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I

FL

AT

ION

A DETAILED STUDY ON INDIAN


INFLATION

CAUSES OF INFLATION
Demand
Cost

pull inflation

push inflation
wages

Rising

Import prices

Raw material prices

Profit push inflation

Declining

Higher

productivity

taxes

HISTORIC INFLATION INDIA

CPI INFLATION
14.97

9.7
5.57

2005

6.53

2006

9.47

9.47
6.49

5.51

2007

9.13

2008

2009

2010

2011

2012

5.86

2013

2014

AVERAGE INFLATION INDIA


AVERAGE CPI INFLATION
10.83

12.11
8.87

8.32
5.79

10.92
9.3

6.39

6.37

4.25

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

EFFECTS OF INFLATION

Redistribution of

Wage Earners

Fixed Income Group

Effects

Income and Wealth

on

Production

Changes in the System of Transactions

Hoarding and Black marketing

Other Effects

Government

Balance of Payments

COMPARISON AMONG TOP


DEVELOPING NATIONS

INFLATION IN SEPTEMBER 2015


10
9
8
7
6
5
4
3
2
1
0

9.49

4.51

4.35

4.64
2.52

1.6
INDIA

CHINA

BRAZIL

SOUTH AFRICA

CHILE

MEXICO

ISSUES RELATED TO INFLATION

balance of payments
Causes uncertainty and falling investment
Createunemployment
Distorts theprice mechanism
Creates money illusion
Bad for the

MEASURES TO CONTROL INFLATION

Monetary Measures

Credit control

Demonetisation of

Currency

Fiscal Measures

Increase in

Public

Taxes

Debt

Other Measures

Wage Policy

Rational

Rationing

MEASURES TAKEN BY INDIAN


GOVERNMENT

export restriction
Imposed minimum stock price
Released stockpiles of staples
Extend a line of credit to state governments
Emendation of state laws
Brought potatoes and onions under purview of ESMA
Imposed

THANK YOU

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