Inflation Pres
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Inflation Pres

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Inflation Pres Inflation Pres Presentation Transcript

  • Policies To Combat Inflation (Automobile Industry)
  • Inflation
    • Price inflation is a rise in the general level of prices of goods and services in an economy over a period of time.
    • Decline in the real value of money—a loss of purchasing power.
    • Inflation rate, which is the percentage change in a price index over time.
  • Causes
    • Quality theories of inflation.
    • Quantity theories of inflation.
    • Demand-pull inflation.
    • Cost-push inflation.
    • Wage spiral inflation.
    • Inflationary Expection.
  • Types of Inflation
    • Moderate inflation – a. creeping inflation ( less than 10 % per annum). B. walking inflation 10 % per annum)
    • Running inflation. ( more than 10 % up to 20% per annum)
    • Galloping inflation. ( more than 20% up to triple digit per annum)
    • Hyper inflation. ( more than 1000% per annum)
  • Effects
    • Each monetary unit buys fewer goods and services.
    • Difficult for companies to budget or plan long-term.
    • Shoe leather costs
    • Menu costs
  • Latest Scenario of Automobile Industry
    • 15-18 per cent of growth during the last five years.
    • Dipped to single digit since the last year.
    • Cost-Push Inflation of more than 12%.
    • Depends largely on metal and oil prices.
  • Policies
    • Monetary policies
    • Ban on commodities export
    • Alternative Fuel cars
    • More Variants
  • Policies Contd…
    • Better Technology
    • Deferred Expansion plans
    • Increased Exports
    • Increase in prices
  • Policies
    • Reduction in wage bill
    • Increase in Marketing
    • Demand to reduce taxes
  • Conclusion
  • Thank You