Inflation in

india
Presented By:-
Bhanwar Singh
MBA 4th Sem
Krupanidhi Business School
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  “Inflation is nothing more than a sharp upward
rise in price level.”
 “Too much money chasing, too few goods.”
 “Inflation is a state in which the value of money
is falling i.e. price are rising.”

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.
The annual inflation rate was 3.5 percent in February
2009.

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 On the basis of rate of inflation
 On the basis of degree of control
 On the basis of causes
 Others

 Demand pull inflation

 Cost push inflation

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 INFLATION RATES
2006-2007 2007-2008 2009-10
2010-11

(Feb.)
Inflation 7.8 12.0
11.2 9.89
Food inflation 10.3 17.6
12.86 8.8
Non-food 6.2 6.8
inflation 11.9 9.6
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 Make it difficult for companies to budget or plan long-
term.
 The future purchasing power of money discourages
investment and saving.

 There can also be negative impacts to trade from

an increased instability in currency exchange prices
caused by unpredictable inflation.
 Higher income tax rates.
 This will increase imports and reduce exports,
leading to a deficit in the balance of trade.
For Example
 Increase in the price of wheat
 Increase in the price of world oil
 Increase in the price of rice
 Increase in the price of CNG
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 Monetary Measures
 Credit Control
 Demonetization of Currency
 Issue of New Currency

 Fiscal Measures
 Reduction in Unnecessary
Expenditure
 Increase in Taxes
 Increase in Savings
 Surplus Budgets
 Other
 PublicMeasures
Debt

 To Increase Production
 Rational Wage Policy
 Price Control

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