Inflationppt 111129055211-phpapp02
This document defines inflation as a rise in the general price level caused by an imbalance between the quantity of money and trade needs. It discusses the different types of inflation including creeping, walking, running, and galloping inflation. Causes of inflation include an increase in money supply, population growth, expansion of bank credit, and poor agricultural performance. Effects are felt by debtors, entrepreneurs, farmers, and different income groups. The document provides an example calculation of inflation and shows a chart comparing inflation rates in different countries. It discusses potential remedies that could be taken, such as increasing cash reserve ratios and decreasing import tariffs. Newspaper articles are referenced that discuss the Indian government's goals to lower inflation rates.
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Inflationppt 111129055211-phpapp02
- 2. SMI - PGPM
- 3. INFLATION “something which decides economy of the country” (UPDATION THROUGH PRESENTATION)
- 4. MEANING DEFINITION TYPES OF INFLATION CAUSES EFFECTS HOW TO CALCULATE INFLATION RATE EXAMPLE CHART INFLATION IN NEWS PAPER REMEDIES TABLE OF CONTENT
- 5. Rise in Price It is a rise in the general price level caused by an imbalance between the quantity of money and trade needs.
- 6. The word "inflation" originally applied solely to the quantity of money. It meant that the volume of money was inflated, blown up, overextended.
- 7. According to Pigou “ Inflation arises when money income is expanding more than proportionate to income earning activity”.
- 8. Types of inflation (Rise in price) , 1) Creeping inflation 2) Walking inflation 3) Running inflation 4) Galloping inflation
- 9. Walking inflation:- Creeping inflation:- The inflation of a nation increases gradually, but continually, over time. When the price rise is moderate. It is a warning signal for the government to control it before it turns into running inflation.
- 10. Galloping inflation:- Running inflation:- A rapid acceleration in the rate of rising prices more than 10% per annum is referred as Running Inflation Prices rise by double or triple digit inflation rates like 400% or 999% per annum.
- 11. 1)Demand pull inflation(ex: petrol) 2)Cost push inflation(ex: cement) 3)Over- Expansion of Money Supply 4)Increase in Population 5)Expansion of Bank Credit 6)Black Money 7)Poor Performance of Farm Sector
- 12. EFFECTS OF INFLATION • DEBTORS • ENTREPRENEURS • FARMERS • UPPER INCOME GROUPS • CREDITORS • FIXED INCOME GROUPS • CONSUMERS • MIDDLE AND LOWER INCOME GROUPS BENEFITS LOSES
- 13. Calculation of inflation: New price – Old price Old price * 100= For instance:- Inflation for today’s petrol price. Old price = 70 New price = 75 = 75-70 70 * 100 = 7.14%
- 14. ITEM RICE PETROL INFLATION RATE 5% 7% 5% 7% POOR 5K 3K 5L 3L MIDDLE 5K 4K 5L 4L RICH 5K 5K 5L 5L
- 17. Flag country Inflation Rate Consumer price(%) Nepal 8.6 Turkey 8.7 Greenland 9.4 Uganda 9.4 Burma 9.6 Ukraine 9.8 India 9.7 9.o%
- 18. Inflation will come down to 6-7 percent by March: Pranab In the next 6 to 12 months as the government has taken a number of fiscal and monetary measures to address the issue of demand-supply mismatch, the main reason behind general price rise.
- 19. Sonia asks govt to provide relief to common man
- 20. Inflation likely to fall to 7% by March 2012: Rangarajan Dr C. Rangarajan, Chairman, (Prime Minister’s Economic Advisory Council.)
- 22. REMEDIES 1. Cash Reserve Ratio increased. 2. Control over Price of Petrol and Diesel. 3. Decreased import tariff. 4. Tax increase 5. Cement price control. 6. Import duty on non-agricultural products was brought down to 10% from 12.5% 7. Allowed appreciating the Rupee.