sharad mishra pacific new ppt about inflation

1. Inflation defined
 Rise in the general level of prices
 Fall in the value of money
Inflation reduces the purchasing power
of Yd

2. Classification on the basis of rate of
inflation
 1) Creeping inflation : It refers to that inflation
wherein prices rise very slowly. some economists of the
view that 3% rise in prices can be called creeping
inflation.
 2)Walking inflation : When prices-rise between thirty
and forty%, it is called walking inflation.
 3) Running or Galloping inflation: when prices rise
between eighty and hundred percent.
 4)Hyper inflation: a situation when prices rise at an
unexpected rate.

3. MEASURES OF INFLATION
 WPI: It is the price of a representative basket of
wholesale goods. It is calculated on the basis of
wholesale prices. It is used to tell and measure the
changes in the average price level of goods traded at
wholesale prices. There are lots of advantages of using
WPI:
 1) It is very comprehensive.
 2) Widely available every where.
 3) It is updated on weekly basis.
 The main groups of items included in it are:
1)Primary articles,2) Manufactured articles,3)
Fuel,power,light and lubricants.

4. Factors on the demand side affecting
prices
 1) Increase in public expenditure
 2) Deficit financing
 3) Black money
 4) Increase in population
 5) Increase in disposable income, decrease in taxes,
cheap monetary policy etc.

5. Factors on the supply side affecting
prices
 1) Erratic agricultural growth
 2) Hoarding of essential articles
 3) Agricultural price policy of the govt.
 4) Inadequate rise in industrial production
 5) Others like import prices of petroleum, tax rate etc.

6. THANK YOU
SHARAD MISHRA
Pacific fire control
Sales manager