1) Readers Question What is inflation,
- Inflation is a sustained increase in the general price level. See: definition of inflation
How is inflation calculated?
- Inflation is calculated using the CPI – see: measuring inflation
and impact on economy if it bit increases or decreases.
If inflation increases above the governments target of 2% it is said to have various economic costs, such as creating instability, uncertainty and lower international competitiveness. See costs of inflation
If prices fall, then we have deflation. Deflation can be harmful if it leads to lower demand. See: impact of inflation and deflation
3 comments ↓
actually sir i want get whole information about inflation …and its causes and its advantages n disadvantages….so plzz give me ur guidance if u can
hellow..sir
i want to know the whole information about inflation
n its causes..??
plzzz guide me..sir
I am very interested to know about infation in our indian economy. kindly suggest
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