Learn to Invest is a free course on You Tube by Vivek Bajaj

1. VIVEK
BAJAJ
LEARN2INVEST
Know where to start and how to start!
PRESENTS
SESSION 2

2. PERSONAL
INFLATION
RATE
Key Agenda
LEARN2INVEST |
YOUTUBE.COM/VIVEKBAJAJ

3. WHY
LEARN2INVEST?
Get the best guide for your
investment journey!
This series is going to answer two very
important questions for your investment
journey. Where to start and how to start?
This will be a sector specific series guiding
you through each and every sector you
would want to potentially invest in.
LEARN2INVEST |
YOUTUBE.COM/VIVEKBAJAJ

4. WHAT IS
INFLATION?
This can be defined as a
sustained rise in the
general price levels of
goods and services in an
economy, over a specified
period of time. It is also a
reflection of the loss of
purchasing power per unit
of money which means that
the same amount of money
will fetch you lesser value
of goods & services.
LEARN2INVEST |
YOUTUBE.COM/VIVEKBAJAJ

5. TYPES OF INFLATION
DEMAND-PULL INFLATION
Caused due to an increase in aggregate
demand in the economy. Demand
increases while rate of production
remains constant, creating a demand-
supply gap.
COST-PUSH INFLATION
Shortfall of supply causes the rate of
production to rise, thereby causing
inflation. Many factors such as rise in
input price, currency depreciation,
hoarding & speculation, supply chain, etc.
BUILT-IN INFLATION
Wage cost of workers increases,
causing an increase in rate of
production to match wage demand. This
leads to higher prices of goods.
LEARN2INVEST |
YOUTUBE.COM/VIVEKBAJAJ

6. MEASUREMENT
OF INFLATION
Measuring inflation is really
important and indispensable. It
needs strict monitoring as history
is testimonial to many economies
failing due to unchecked high
inflation rates.
There are three levels at which
inflation can be measure and they
are primarily the producer level,
wholesaler level and retailer level.
PPI
-Producer Price Index
CPI
-Consumer Price Index
WPI
-Wholesale Price Index
Commodity Price Index
Core Price Index
GDP Deflator
LEARN2INVEST |
YOUTUBE.COM/VIVEKBAJAJ

7. WPI -
WHOLESALE PRICE INDEX
Released by the Ministry of Commerce
& Industry !
India considers WPI as the basis for inflation rates
in the economy but it only reflects the wholesale
changes in prices of a basket of goods. It focuses
on goods exchanged between corporations and
not at goods purchased by consumers. Base year
is 2011-12.
LEARN2INVEST |
YOUTUBE.COM/VIVEKBAJAJ

8. CPI -
CONSUMER PRICE INDEX
Measure of Retail Inflation !
This is a measure of changes in the price of a
basket of goods and services purchased by the
households of India. There are four types of CPI in
the country - CPI for Industrial Workers, CPI for
Agricultural Labourers, CPI for Rural Labourers,
CPI for Urban Non-Manual Employees.
LEARN2INVEST |
YOUTUBE.COM/VIVEKBAJAJ

9. PPI -
PRODUCER PRICE INDEX
Seller's Point of View !
This index calculates the average change in price
of goods and services either when they leave the
place of production or when they enter the
process of production. Also known as Output PPI
and Input PPI, respectively. It basically tries to
encapsulate the producer's price changes and not
what the consumer pays for it.
LEARN2INVEST |
YOUTUBE.COM/VIVEKBAJAJ

10. COMMODITY PRICE INDEX
It is a fixed-weighted average of
selected commodity prices, which may
be based on spot or futures price
CORE PRICE INDEX
It measures the prices paid by
consumers for goods and services
without the volatility caused by
movements in food and energy prices.
GDP DEFLATOR
It measures the general price of
inflation and covers the entire ranges of
goods and services as against the
WPI/CPI that only has a basket of
goods & services each.
LEARN2INVEST |
YOUTUBE.COM/VIVEKBAJAJ

11. PERSONAL
COST OF
INFLATION
LEARN2INVEST |
YOUTUBE.COM/VIVEKBAJAJ

12. HOW TO
CALCULATE
YOUR
PERSONAL
COST OF
INFLATION ?
LEARN2INVEST |
YOUTUBE.COM/VIVEKBAJAJ

13. THANK
YOU!
TAKE A SIMPLE IDEA,
AND TAKE IT
SERIOUSLY.
CHARLIE MUNGER
LEARN2INVEST |
YOUTUBE.COM/VIVEKBAJAJ

14. https://www.youtube.com/vivekbajaj
FOLLOW & SUBSCRIBE
YOUTUBE
TWITTER
https://twitter.com/vivbajaj
INSTAGRAM
https://instagram.com/vivbajaj