Inflation ppt

4,037 views

Published on

0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
4,037
On SlideShare
0
From Embeds
0
Number of Embeds
2
Actions
Shares
0
Downloads
181
Comments
0
Likes
1
Embeds 0
No embeds

No notes for slide

Inflation ppt

  1. 1. A sustained rise in thegeneral price level over a period of time is known as “inflation”. In other words it isdefined as “the process by which price level rises and the money loses its value”.
  2. 2. In India inflation is measured in two ways that are as follows: WHOLESALE PRICE INDEX (WPI) &CONSUMER PRICE INDEX (CPI)
  3. 3. The Wholesale Price Index or WPI is the price of arepresentative basket of wholesale goods. India- the only major country that uses WPI (1st published in 1902)
  4. 4. A measure of the average priceof consumer goods and services purchased by households (1st published in 1970) CPI indicates the change in the purchasing power of the consumer Published on a monthly basis
  5. 5. WHOLESALE PRICE INDEX CONSUMER PRICE INDEX (WPI) (CPI) Index of prices prevailing in  Index of prices prevailing in wholesale market retail market. Covers a fixed basket of  Index representing the basket goods comprising primary of essential commodities purchased by the average articles, food articles, consumer-food, fuel, lighting, minerals, fuel prices, housing, clothing, articles etc. machinery etc.  Measured monthly in India; Measured weekly in India; more popular measure in The primary inflation developed nations like USA, measure used over here. UK, JAPAN.
  6. 6. DEMAND PULL INFLATION COST PUSH INFLATION
  7. 7. Demand pull inflation may be due to : A)Rise in aggregate demand B)Increase in money supply C)Increase in government purchases
  8. 8. Cost push inflation may arise because of : A)Increase in money wage rates B)Increase in money prices of raw materials

×