Mehngai Daayan....

1. Inflation in
India
Presented By-
Shubham Singhal
EC-09 1

2.  “Inflation is nothing more than a sharp upward rise
in price level.”
 “Too much money chasing, too few goods.”
 “Inflation is a state in which the value of money is
falling i.e. price are rising.”
Based on the wholesale price index, rose to 9.89 percent
in February from 8.56 percent in the previous month,
official data revealed Monday.
The annual inflation rate was 3.5 percent in February
2009.
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3.  On the basis of rate of inflation
 On the basis of degree of control
 On the basis of causes
 Others
 Demand pull inflation
 Cost push inflation
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5. INFLATION RATES
2006-2007 2007-2008 2009-10 2010-11
(Feb.)
Inflation 7.8 12.0 11.2 9.89
Food inflation 10.3 17.6 12.86 8.8
Non-food inflation 6.2 6.8 11.9 9.6
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6.  Make it difficult for companies to budget or plan
long-term.
 The future purchasing power of money discourages
investment and saving.
 There can also be negative impacts to trade from an
increased instability in currency exchange prices
caused by unpredictable inflation.
 Higher income tax rates.
 This will increase imports and reduce exports, leading
to a deficit in the balance of trade.
For 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
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11.  Monetary Measures
 Credit Control
 Demonetization of Currency
 Issue of New Currency
 Fiscal Measures
 Reduction in Unnecessary Expenditure
 Increase in Taxes
 Increase in Savings
 Surplus Budgets
 Public Debt
 Other Measures
 To Increase Production
 Rational Wage Policy
 Price Control
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12.  RBI is going to increase in interest rate of all types loan.
 RBI is also cut down the dept rate.
 RBI is also doing work for to control the credit.
 RBI hikes repo, reverse repo rates by 25 bps:The Reserve Bank
of India (RBI) today raised key policy rates by 25 basis points
(bps) to mark a reversal of its easy monetary policy regime to
tame inflation and anchor inflationary expectations.
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