This document defines inflation as a persistent and appreciable rise in the general level of average prices. It notes that inflation is a continuous rise in prices, not a sudden price jump. The document discusses some effects of inflation like hoarding, increased risk for fixed income recipients, and lowering national savings. It provides examples of inflation seen in increased prices of items like wheat, oil, rice, and CNG. In conclusion, it states inflation poses a threat and has been caused by rapid growth, but falling oil prices and higher interest rates may help reduce inflation. Key challenges for the Indian economy include controlling inflation and spreading growth benefits more equitably.

1. Presented By :- Kishan Khunt
Simaq Malik
To,
Kinjal Mistry
Faculty
(I2IM Charusat)
BM102
Foundation Course in
Economics 1FCE (103)

2. INFLATION :
THE INDIAN EXPRESS :
Author : Surjit S. Bhalla
Published : Aug 26, 2015
2
FCE (103)

3. INFLATION :
Flow Of Presentation :
Definition
Conclusion
Effects of Inflation
Example
3FCE (103)

4. INFLATION :
Definition
 According to Prof Ackly Garden
“Inflation is a persistent and appreciable rise in general level of
average prices.”
Explanation
Thus from above mention definitions it is concluded that
inflation is a phenomenon whereby general price level rises
consistently. If price level suddenly jumps, this does not
represent inflation, rather inflation is a process of continuous
rise in prices.
4FCE (103)

5.  Inflation continues posing a threat
 Inflation has been caused by rapid growth
 Fall in oil prices and higher interest rates will lead to
reduction in inflation
 Challenges for Indian Economy in 2011
 Getting inflation under control
 Spreading the growth benefits more equitably.
 Completing investment projects that are essential for
the long term development of economy.
 Dealing with global financial uncertainty that will
make the capital flows and exports more difficult.
Conclusion

6.  Hoarding
 Increased risk
 Fixed income recipients
 Increased consumption ratio
 Lowers national saving
 Illusions of making profits
 Rising prices of imports
 Causes business cycles to go out of business
Effects of Inflation
6FCE (103)

7. EXAMPLE
 Increase in the price of wheat
 Increase in the price of world oil
 Increase in the price of rice
 Increase in the price of CNG
7FCE (103)

8. Q & A
8FCE (103)