1. INFLATION IN INDIA
BY :
Sambit Kumar Biswal
Ajit Kumar Pallei
Manoj Kumar Sahoo
Ratikanta Rout
Manaj Kumar Behera
Jitendra Kar
2. INTRODUCTION
Inflation is defined as a continuous increase
in the price level or a fall in the value of
money.
When the level of currency of a country
exceeds the level of production, inflation
occurs.
Value of money depreciates with the
occurrence of inflation.
3. OBJECTIVES
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).
To establish the relationship between
inflation and GDP growth rate in Tanzania.
4. REASONS OF INFLATION IN INDIA
Rise in Crude Oil Prices
Rise in food Prices
Black Money
GDP
Wage rate wise
5. HOW IT IS MEASURED
CPI (Consumer Price Index)
WPI (Wholesale Price Index)
Inflation Rate = Current CPI/WPI – Last
CPI/WPI
Last CPI/WPI
x 100
7. CONCLUSION
The main objective of this study was to
examine the impact of inflation on economic
growth in India. Annual time-series data for
the period of 1990-2011 were employed. The
diagnostic tests carried out for all variables
were all satisfied, that is, no serial correlation
and heteroskedasticity were observed,
implying that the estimates are reliable and
therefore can be relied upon.