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Abstract: Indian economy is a developing economy and it faces many challenges from all directions. It also faces some extra challenges not only economic but also from other sectors of society. In this paper the challenge of inflation and its consumption relation is explained. Many economic experts and political world leaders accused Indian consumers for the world inflation rise. Indian particularly middle and lower income families feet the heat of the inflation more intensively than higher income group peoples. Inflation is basically problem of demand and supply equation, but many other factors also involved in it. Some dilemma of the inflation is presented in this paper. Not only people of India but also the central and states governments are also afraid of inflation. Many economists we well as politicians assumed that inflation is affecting the consumption or the consumer is the cause of inflation.
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THE CHALLENGE OF INFLATION AND ITS CONSUMPTION RELATION
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