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Inflation Pres


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Inflation Pres

  1. 1. Policies To Combat Inflation (Automobile Industry)
  2. 2. Inflation <ul><li>Price inflation is a rise in the general level of prices of goods and services in an economy over a period of time. </li></ul><ul><li>Decline in the real value of money—a loss of purchasing power. </li></ul><ul><li>Inflation rate, which is the percentage change in a price index over time. </li></ul>
  3. 3. Causes <ul><li>Quality theories of inflation. </li></ul><ul><li>Quantity theories of inflation. </li></ul><ul><li>Demand-pull inflation. </li></ul><ul><li>Cost-push inflation. </li></ul><ul><li>Wage spiral inflation. </li></ul><ul><li>Inflationary Expection. </li></ul>
  4. 4. Types of Inflation <ul><li>Moderate inflation – a. creeping inflation ( less than 10 % per annum). B. walking inflation 10 % per annum) </li></ul><ul><li>Running inflation. ( more than 10 % up to 20% per annum) </li></ul><ul><li>Galloping inflation. ( more than 20% up to triple digit per annum) </li></ul><ul><li>Hyper inflation. ( more than 1000% per annum) </li></ul>
  5. 5. Effects <ul><li>Each monetary unit buys fewer goods and services. </li></ul><ul><li>Difficult for companies to budget or plan long-term. </li></ul><ul><li>Shoe leather costs </li></ul><ul><li>Menu costs </li></ul>
  6. 6. Latest Scenario of Automobile Industry <ul><li>15-18 per cent of growth during the last five years. </li></ul><ul><li>Dipped to single digit since the last year. </li></ul><ul><li>Cost-Push Inflation of more than 12%. </li></ul><ul><li>Depends largely on metal and oil prices. </li></ul>
  7. 7. Policies <ul><li>Monetary policies </li></ul><ul><li>Ban on commodities export </li></ul><ul><li>Alternative Fuel cars </li></ul><ul><li>More Variants </li></ul>
  8. 8. Policies Contd… <ul><li>Better Technology </li></ul><ul><li>Deferred Expansion plans </li></ul><ul><li>Increased Exports </li></ul><ul><li>Increase in prices </li></ul>
  9. 9. Policies <ul><li>Reduction in wage bill </li></ul><ul><li>Increase in Marketing </li></ul><ul><li>Demand to reduce taxes </li></ul>
  10. 10. Conclusion
  11. 11. Thank You