Inflation in India

In 2014, inflation played a vital role in the fall of the congress government. Since then there has been an increase in inflation rate but up to certain limits only and has not exceeded beyond our present government’s hands. In our everyday life, we often come across a lot of article where we read about those below the poverty line who cannot even afford to buy or complete even their basic and necessary needs due inflation.

First of all what is inflation all about? In simple words inflation is an increase in price of any particular goods with respect to its price in the previous years and the percentage increase in that price is termed as inflation rate. Three of the basic categories of the goods are Foods & Beverages, Oil & Petrol and Electronics whose prices generally increase every year due to inflation.

Price index is the term which is generally used for inflation which basically is the percentage increase in price of the current year from the base year which is 2012 for India. For example, when the consumer price index is 10%, then it means that a good which was worth Rs.100 in 2012 is being sold for Rs.110 in the present year. Inflation can also cause the downfall in the Stock Market which eventually affects the economy of the country. In 2008, similar incident took place in US where the stock market got crashed which resulted in financial crisis in US. A number of documentaries and web shows have also been created depicting real life incidents or fictional incidents about financial crisis. Inflation obviously causes a negative effect on our economy. The salaries of the employees are fixed as per the contract but there is no such fixation in the prices of goods which also does not allow a middle class person to complete its non-essential needs.….Read Full Article on -: https://www.changingdecade.com/2022/07/inflation-in-india.html

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