m
  

 
Made by
Bharat bhandari
Bcom (P)
2nd year
Roll 1no. 1542
 V ` nflation is nothing more than a sharp upward rise
in price level.µ
V `
oo much money chasing, too few goods.µ
V ` nflation is a state in which the value of money is
falling i.e. price are rising.µ

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.

he annual inflation rate was 3.5 percent in February
2009.

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V n the basis of rate of inflation
V n the basis of degree of control
V n the basis of causes
V thers

V Demand pull inflation

V Cost push inflation

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V Make it difficult for companies to budget or plan
long-term.
V
he future purchasing power of money discourages
investment and saving.
V
here can also be negative impacts to trade from an
increased instability in currency exchange prices
caused by unpredictable inflation.
V Higher income tax rates.
V
his will increase imports and reduce exports, leading
to a deficit in the balance of trade.
For Example
V ncrease in the price of wheat
V ncrease in the price of world oil
V ncrease in the price of rice
V ncrease in the price of CNG
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V Monetary Measures
V Credit Control
V Demonetization of Currency
V ssue of New Currency

V Fiscal Measures
V Reduction in Unnecessary Expenditure
V ncrease in
axes
V ncrease in Savings
V Surplus Budgets
V Public Debt

V ther Measures
V
o ncrease Production
V Rational Wage Policy
V Price Control

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V RB is going to increase in interest rate of all types loan.
V RB is also cut down the dept rate.
V RB is also doing work for to control the credit.
V RBI hikes repo, reverse repo rates by 25 bps:
he Reserve Bank
of ndia (RB ) 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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