WHAT IS INFLATION CAUSES MEASURES COLCLUTION

1. Sonal sawant 43
Rahul sawant 42
Gayatri rane 39
Snehankita 15
Shubham m. 30
Tejasvini 26

2. WHAT IS INFLATION
• INFLATION IS A SUSTAINED RISE IN THE GENERAL
LEVEL OF PRICES OF GOODS
• AND SERVICES IN AN ECONOMY OVER A PERIOD OF
TIME.
• AS INFLATION RISES THE VALUE OF EVERY RUPEE
YOU OWN DECREASES.
• THEREFORE EVERY RUPEE YOU OWN BUYS A
SMALLER PERCENTAGE OF GOODS AND SRVICES.

3. FOOD INFLATION
• FOOD INFLATION IS THE RISE IN PRICES OF FOOD ITEMS.
• IT IS CALCULATED ON THE BASIS OF THE WPI ( WHOLESALE
PRICE INDEX )
• IT IS CALCULATED BY THE CENTRAL STATISTICAL
ORGANISATION (CSO )
• THOUGH THE CURRENT RATE IS 9.16 IN SEP 2014, FOOD
INFLATION HAS EVEN TOUCHED DOUBLE DIGITS(19.33 IN
late 2013)

4. CAUSES OF INFLATION
• RISE IN PRODUCTION COST AND LABOUR COST.
• EXPORT OF FOOD PRODUCTS SPECULATION
• HIGH TRANSPORTATION COST
• HOARDING OF FOOD PRODUCTS
• EXPLOITATION OF LAND

5. OTHER REASONS:
• RAISE IN MARGINAL SUPPORT PRICES
• POPULATION AND CLIMATE CHANGES
• IGNORANCE AND LACK OF TECHNOLOGY IN THE
AGRICULTURE SECTOR.
• DIVERSIFICATION OF DIET TOWARDS HIGH VALUE
FOODS.

8. INDIANS SPENDING PATTERN

9. INEQUALITY IN FOOD INTAKE

10. FOOD INFLATION

11. IMPACT OF FOOD INFLATION
• A LARGE SECTION OF THE PEOPLE ARE LOSING OUT
ON THEIR PURCHASING POWER.
• CORRUPTION IN PDS SHOPS.
• FORCES COMMON MAN TO BORROW MONEY FROM
BANKS AND OTHER FINANCIAL INSTITUTIONS.
• IT WILL BRING DOWN INDIA’S ECONOMIC GROWTH.

12. GOVERNMENT RECOMENDATIONS
• REVISED MONETARY
POLICIES.
• OPEN UP SEVERAL SUPPLY
OUTLETS
• REDUCE TAXES ON FOOD
ITEMS.
• UTILITY FOOD ITEMS ON
SUBSIDISED RATES.

13. GOVERNMENT MEASURES
• EFFECTIVE USE OF MONETARY POLICIES WITHOUT
AFFECTING GROWTH RATE.
• INCREASE IN PRODUCTIVITY OF AGRICULTURAL
LAND.
• IMPLIMENT ESSENTIAL COMMODITIES ACT.
• REDUCE THE GAP BETWEEN THE FARM PRICE AND
THE RETAIL PRICE.

14. SOME SUGGESTIONS
• Buy in bulk and store products whose prices are
likely to go up
• Consumers should take advantage of attractive offers
at discount chains
• Start cutting down on discretionary consumption
• Control your consumption of high-priced items
• Use substitutes and postpone consumption of
certain items

15. CONCLUSION
• POOR MONSOON, FLOODS, SPECULATION , LACK OF
TECHNOLOGY AND HOARDING OF FOOD GRAINS PAVED A
WAY FOR INFLATION WHICH HAS MADE THE LIVING OF
MIDDLE INCOME GROUP CONSUMERS HECTIC.
• IN ORDER TO KEEP PACE WITH THE GROWING POPULATION
THE FOOD PRODUCTION ALSO HAS TO GROW .
• BUT STILL THE PROBLEM PERSISITS. THEREFORE IT IS
IMPORTANT THAT THE GOVERNMENT IMPLEMENTS LONG
TERM REFORMS , TO ENSURE THAT THIS PROBLEM DOES
NOT ARISE IN FUTURE.

16. THANK YOU