The document discusses different types of inflation including demand-pull, cost-push, pricing power, and sectoral inflation. It provides data on Pakistan's inflation rate from 2002-2012, noting it was highest in 2008 due to rising food prices, currency devaluation, and political unrest. The document also lists some measures that could help control inflation such as implementing a proper taxation system, increasing exports, building foreign reserves, stopping corruption, currency devaluation, and increasing electricity production.

2. PRINCIPLE OF MACRO ECONOMICS
Saad Iqbal
BBA3

3. The rate at which the general level of prices for
goods and services is rising and purchasing
power is falling

4. 
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
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Demand Pull Inflation: Demand-pull inflation
is dependent on the demand of goods which
changes the price of the product.
Cost Pull inflation: Cost-push inflation
changes when the cost of goods needed for
production changes.
Pricing Power Inflation: When companies
decide to raise the cost of their prices to
increase their profits
Sectoral Inflation: When a certain sector
increases prices across the board.

5. Inflation Rate
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012

6. 


Food inflation stood low because of improved
supply of food related items like potatoes
tomatoes onion and vegetables.
Inflation across the world is building up due
to increase in global fuel prices which quickly
feed into overall prices.
Devaluation of Currency also effect the
inflation rate, Government policies also result
in devaluation of the currency.

7. 
Inflation Rate was high in 2008 mainly
because of rising food prices, Devaluation of
the rupee against the dollar and political
unrest and a deteriorating law and order
situation have all hampered government
efforts to stabilize domestic prices through
2008-09.

8. Yearly Inflation Rate
25.00%
INFLATION RATE
20.00%
15.00%
Pakistan
10.00%
Bangladesh
5.00%
0.00%
2002
2003
2004
2005
2006
2007
YEARS
2008
2009
2010
2011
2012

9. 
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

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Proper taxation system
Increase export
Increase foreign reserves
Stop corruption
Devaluation of money
Produce Electricity