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Inflation

Inflation

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Published by Gaurav Kumar

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Published by: Gaurav Kumar on Aug 13, 2009
Copyright:Attribution Non-commercial

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04/26/2011

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Inflation
Group 5
Amol Bagla – 05Rahul Gandhi – 17Kirti M.Siddapur – 29Priyanka Raghunandan – 41Sreenath M – 44Versha Saxena – 65
 
Definition
Inflation is a persistent rise in the general level of prices over a period of time.
Different names of inflation:- Creeping inflation:
Rate of increase is less than 3% per annum
- Walking Inflation:
Rate of increase is between 3% - 7%
- Running Inflation:
Rate of increase is between 10% - 20%
- Hyper inflation:
Rate of increase is between 20% and more
 
Measuring Inflation
Inflation is the rate of change in the pricelevel
If the price level in the current year is ‘P1’ &in the previous year is ‘Po’, then inflation for the current year is
(P1 – Po)/ Po x 100

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