Frontline magazine June 17th 2022 edition presentation

1. MAGAZINE PRESENTATION-
“LET’S TALK ABOUT
INFLATION”
Presented by – Rishi Raj
Magazine name – Frontline
Edition – June 17 , 2022

2. CONTENTS
1. What is retail inflation
2. Graphs
3. Causes of inflation
4. Effects of inflation (Favourable & Unfavourable)
5. Rates of inflation in various states
6. Understanding basic terms
7. conclusion
8. Thank you

3. WHAT IS INFLATION
• Rise ingenerallevelsofpricesofgoods andservices
inan economyovera periodoftime
• Each unitofcurrencybuys fewergoods andservices
• Retailinflation –
CPI monitorsretailpricesat acertainlevelfora
particular commodity– pricemovementat rural,urban &
allIndialevels
• CPI - ConsumerPrice Index
Measure ofaveragechange overtimein pricespaid by
consumersforconsumer goods andservices
current rate –
6.77%
RBI’s target range
– 2% to 6%

5. CAUSES OF INFLATION
• Cost push inflation
• Demand pull inflation
• Monetary devaluation
• Population growth
• Hoarding
• Exports

6. EFFECTS OF INFLATION
•FAVOURABLE IMPACTS OF INFLATION
1. Higher profits to producers
2. Increase in production
3. Higher employment and income
4. Shareholders can earn good income

7. •UNFAVOURABLE IMPACTS OF INFLATION
1. It reduces living standard and purchasing power of
people – family getting sick
2. Fall in real income of fixed-income groups – some need
to take debts- savings used up
3. Speculative investment increases
4. Lenders face losses
5. Poor who cannot afford basic living standard indulge
their kids into odd jobs

8. Source – ThePrint
15th JULY 2022
States with highest
inflation
• Telangana
• Andhra Pradesh
• Haryana
• Maharashtra
• Rajasthan & MP
States with lowest
inflation
• Tamil Nadu & Delhi
• Bihar
• Meghalaya
• Goa
• Manipur

9. UNDERSTANDING BASIC TERMS
INFLATION - quantitative measure of how quickly the price of goods
in an economy is increasing
DEFLATION - Deflation occurs when too many goods are available or
when there is not enough money circulating to purchase those goods.
As a result, the price of goods and services drops
DEPRESSION – an extreme fall in economic activity or extreme
recession that lasts for 3 or more years. Results in decline in GDP of
atleast 10%
RECESSION – Normal part of the business cycle - significant decline
in economic activity across the country for few months

10. CONCLUSION
➢Low inflation rate and an upward economic growth is never possible.
➢However low inflation rate means slow economic growth.
➢Whenever money is in excess the demand increases due to which
cost of goods escalate.
➢Inflation’s main consequence is reduction in our standard of living
➢Inflation is really bad for our retirement planning because our target
has to keep getting higher and higher to pay for the same quality of
life. Our savings will buy less. As a result, we will need to save more
today to pay for higher priced goods and services in the future.
➢Another demerit is once people start to expect inflation, they will
spend now rather than later. This consumer spending heats up the
economy even more, leading to further inflation

11. THANKYOU
Sincere thanks to the faculty for giving this project
which helped me know things beyond textbooks and
thank you for believing in me.
Thank you for providing us with the magazine.
Thank you to every one who helped me complete this
assignment.
REFERENCES
1. FrontlinemagazineJune17th,2022edition
2. Indiatodaywebsite
3. ThePrintwebsite
4. MoneyControlwebsite
5. Forbes.com
6. Investopedia.com