What is inflation - Information about Inflation

1- What is inflation - Information about Inflation

What is inflation - Information about Inflation It is the job of the government to control the economy of any country. The government increases GDP by taking many measures. Due to which the country develops, the central government and state government in India do this work. Controlling inflation is a challenging task for any country. The government and the Reserve Bank of India work together to control inflation. Inflation is related to inflation. On this page, what is inflation is being told.


What is inflation - Information about Inflation


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2- What is Inflation ?

When there is an increase in the price of goods and services, this situation is called inflation. Let us try to understand this in other sense, when inflation increases in the country, then there is inflation, inflation means growth.


Example – If you buy an item at Rs 10 per kg, suddenly its price is increased to Rs 20 per kg, then the increased price is called inflation.


  • Reasons for Inflation
  • Demand driven inflation
  • Cost inflation
  • Excess printing or flow of currency


#1. Demand Driven Inflation

In demand induced inflation, demand for goods becomes more and its supply is less, due to less supply, there is a huge increase in the price of goods.


#2. Cost Inflation

In cost-induced inflation, the cost of production of goods is high, due to which the company makes goods or services expensive to extract its profit, which increases inflation or inflation.


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#3. Excess Printing or Flow of Currency

When the central bank of a country prints a very large amount of currency and gives it in the market, due to which people have more currency, which increases the purchasing power of the people. People want to take advantage of more and more goods or services, but there is less supply of those goods or services in the market. In this stage, people buy that goods or services by paying a higher price, due to which inflation or inflation increases.


Here we have provided you information about what is inflation, if you have any kind of question related to this information, or want to get any other information related to it, then through the comment box. You can ask, we are waiting for your feedback and suggestions.

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