this is a presentation on inflation and deflation in economics

1. Presented by-
md shahid
Inflation and deflation in
economics

2.  An increase in the general level of prices in an
economy that is sustained over a period of
time is called inflation.
 When demand is more than the supply that
may lead to inflation .
What is inflation

3. Measuring
inflation
 INFLATION IS RATE OF CHANGE IN
THE PRICE LEVEL
 IF THE PRICE LEVEL IN THE
CURRENT YEAR IS P2 AND IN THE
PREVIOUS YEAR P1
 THEN INFLATION FOR THE
CURRENT YEAR IS
[(P2-P1)/P1)]*100

4. TYPES OF INFLATION
1.Creeping inflation
 When the rise in prices is very low like that of a small or
creeper is called Creeping inflation.
 Here inflation rate is up to 5%
 The general level of prices rises at a moderate rate over a long
period of time

5. 2.Running Inflation
Running inflation has inflation rat between 8-
10%.A sense of urgency Needs to be shown in
controlling the running inflation .
Persistent running inflation reduces the saving in
the economy and result in slowdown in economy
growth.

6. 3.HYPER INFLATION
Prices rise very fast at double or triple
digit rate.
Also called Runway or Galloping inflations.
This type of inflation is witnessed in the
many past countries.