2. Inflation is a rise in the general level of prices
of goods and services in an economy over a
period of time.
Inflation is nothing more than a sharp upward
rise in price level.
Too much money chasing, too few goods.
Inflation is a state in which the value of money
is falling. i.e. price are rising.
3. To examine the impact of inflation on economic
growth in India over the period 1990-2011.
To measure the degree of responsiveness of
Indian economic growth (GDP) to changes in the
general price levels (Inflation rate).
Objectives
4. Demand-Pull Inflation:
This theory can be summarized as “too
much money chasing too few goods”. This
usually occurs in growing economies.
Cost-Push Inflation:
When companies’ cots go up, they need to
increase prices to maintain their profit margins.
5. Rise in price of Crude Oil
Rise in Food Prices
Black Money
GDP
Wage rate wise
6.
7. Rise in fuel prices:
Rise in petrol prices significantly effects the CPI of the country
& rise in diesel prices effects inflation as a whole.
Oil is our no. 1 purchase (import) with 31% commodity share
for the 2010 -2011.
