Inflation is often one of the most misunderstood economic indicators. While inflation is broadly understood as the general rise in the prices of goods and services year on year, inflation is a more complex phenomena associated with the money supply and currency values. An increase in the money supply, or currency in circulation in simple terms, leads to a decrease in the value associated with the currency – a persistent decrease in the purchasing power of money. This decrease in the value increases the prices of goods and services, i.e., more of the currency is required to buy the same goods and services as compared to the prior year. The following PPT on inflation provides a detailed explanation of inflation, its causes and effects and the ways to control inflation apart from the below tips on inflation.
Read about Inflation in India and How to survive and even thrive during inflation for both companies and individuals.
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