ppt

2. WHILE WRITING KEEP 4 W’s and 1 H IN YOUR
MIND
WHAT
WHERE
WHO
WHICH
HOW

4. An increase in the price you
pay for goods.
OR
Price Inflation is when
prices get higher or it
takes more money to buy
the same item.

5. •INCREASE IN PRICES OF DAILY
USE COMMODITIES
•CUSTOM DUTIES ON IMPORTS
ARE REDUCED
•CUSTOM DUTIES ON EXPORTS
ARE INCREASED

6. According to economists current
inflation rate is 8.98% recorded
on 1stDecember, 08.

9. EFFECT ON SHARE MARKET…

10. •June 27:- India’s inflation rate jumped
to 11.42 per cent in mid-June, its
highest in more than 13 years, and
analysts said the central bank could
follow up two rate increases this month
with more policy tightening as prices
climb.
• The wholesale price index rose
11.42 per cent in the 12 months to
June 14, up from 11.05 per cent a
week earlier to its highest since
annual numbers in the current series
became available in April 1995.

11. An increase in the general level of prices
implies a decrease in the purchasing power of
the currency.
Uncertainty about future inflation may
discourage investment and saving of the
people in stock market.

12. •Rise in prices of food items
for example :- fruits,vegetables
•Rise in fuels for example LPG
Petrol
• Availability of loans at high rate of interest.
•Risk in investments

14. 4
 RISK IN INVESTMENT IN STOCK
MARKET
 DIRECT AND INDIRECT TAXATION
 DECRESE IN PURCHASING POWER OF
COMMON PEOPLE

15. StepS taken By
the
Government

16. INFLATION CAN’NOT BE AVOIDED BUT ITS EFFECT
CAN BE LOWEREDBY FOLLOWING WAYS:-
 PAYMENT OF TAXES
 BY PURCHASING INDIAN GOODS
 BY AVOIDING LARGE INVESTMENT IN SHARE
MARKET