I M PA C T O F I N F L AT I O N O N P O O R

PEOPLE
CONTENT

• Impact of inflation on poor people

• Problems
• Inflation In India
IMPACT OF INFLATION ON POOR
PEOPLE
• Inflation affects the poor very badly, and worse, it affects them for
life and for generations. The combination of inflation and being
poor is worst. Particularly for the poor, inflation forces them to
spend almost their entire income for the very basic necessities of
survival like food, clothing and shelter, in that order.
1. The poor cannot afford to spend anything for educating
themselves or their children.
2. The poor cannot acquire or own any assets, which again
prevents them from getting at least the positive benefits of
inflation due to the increase in value of these assets in future.
3. The inflation condemns the poor to a life time of bad health and
worse living conditions.
PROBLEMS

• Difficulty Paying for Living Expenses

• Worse Work
• Unaffordable Healthcare Costs
• Unaffordable Education Costs
INFLATION IN INDIA

Trends in Inflation After Independence. It can be studied into two

parts:
• (A)Pre-Plan Period.
• (B)During Plan or Post-Plan Period.
 PRICE TREND DURING PLAN PERIOD (%)
SOURCE: RESERVE BANK’S ESTIMATED REPORT 2005,
AND 2015 (DECEMBER 2, 2015)
PERIOD PRE POST

PLANS 1st 2nd 3rd 4th 5th 6th 7th 8th 9th 10th 11th 12th
1951- 1956- 1961- 1969- 1974- 1980-1985 1985-1990 1992-1997 1997-2002 2002-2007 2007- 2015-
1956 1961 1966 1974 1978 2012 2020

ANNUAL -3.7 6.2 5.7 8.9 6.3 9.7 6.7 6.6 6.3 5.1 7.0 6.0