In this article,Lets have a look at inflation and its phenomenon.
People attach a value to goods available in nature based up on their uses and importance.Price will be fixed basing on the value attached to such articles.It will not be steady.Its price increases or decreases from place to place,time to time according to demand.The raw-material,production cost and profit together fix the price.It will be further increased with the taxes imposed on it.When prices rise beyond a particular level it will be termed as inflation.When there is large-scale production and then the producers are satisfied with limited profits,prices will not increase.
Following are some factors that leads to inflation:
1.When the production decreases and the demand increases.
2.When there are problems like heavy rain fall or drought,floods,natural calamities,wars or rise in price of raw materials.
3.When there is an increase in the wages of workers.
4.when taxes increase.
5.When consumers purchase goods in excess and store them,there arises a deficit in those goods which lead to price rise.
All classes of people are hit by this inflationary trend.This problem is more severe when the prices of essential commodities(or goods of daily use) increases.Examples include:
1.Food products like Rice,pulses,oils,sugar etc
2.Essentials like medicines,books,milk,electricity and transport conveyance.
Now a days even fancy goods like cosmetics also joined in this list!
Population is increasing at a quick pace.There is increase in demand and supply is not keeping with it.So prices rise.Again after elections,the winning political party recovers the amount it invested from the consumers by increasing the prices of commodities.Moreover the frequent elections have become a curse on people in general and the common man in particular.
The rich people conceal their income.The income they show hardly reflects their true income.There will be excess money or Black money hidden inside.This leads to inflation.
The black money in India plays a vital role in increasing the prices.Recently as per the statistics shown by BJP,there are several thousands of crores of black money deposited in Swiss bank.The alarming thing is Indians are the major depositors of the bank.Government took steps but they are of no use.Today inflation is growing in negative direction which is also not a healthy sigh.To achieve better GDP and quick growth,Government has to bring reforms in economy.Such type of extreme measures are required to keep inflation at bay.
regards,
Saswato.
What is inflation?
People attach a value to goods available in nature based up on their uses and importance.Price will be fixed basing on the value attached to such articles.It will not be steady.Its price increases or decreases from place to place,time to time according to demand.The raw-material,production cost and profit together fix the price.It will be further increased with the taxes imposed on it.When prices rise beyond a particular level it will be termed as inflation.When there is large-scale production and then the producers are satisfied with limited profits,prices will not increase.
Following are some factors that leads to inflation:
1.When the production decreases and the demand increases.
2.When there are problems like heavy rain fall or drought,floods,natural calamities,wars or rise in price of raw materials.
3.When there is an increase in the wages of workers.
4.when taxes increase.
5.When consumers purchase goods in excess and store them,there arises a deficit in those goods which lead to price rise.
All classes of people are hit by this inflationary trend.This problem is more severe when the prices of essential commodities(or goods of daily use) increases.Examples include:
1.Food products like Rice,pulses,oils,sugar etc
2.Essentials like medicines,books,milk,electricity and transport conveyance.
Now a days even fancy goods like cosmetics also joined in this list!
Population is increasing at a quick pace.There is increase in demand and supply is not keeping with it.So prices rise.Again after elections,the winning political party recovers the amount it invested from the consumers by increasing the prices of commodities.Moreover the frequent elections have become a curse on people in general and the common man in particular.
The rich people conceal their income.The income they show hardly reflects their true income.There will be excess money or Black money hidden inside.This leads to inflation.
The black money in India plays a vital role in increasing the prices.Recently as per the statistics shown by BJP,there are several thousands of crores of black money deposited in Swiss bank.The alarming thing is Indians are the major depositors of the bank.Government took steps but they are of no use.Today inflation is growing in negative direction which is also not a healthy sigh.To achieve better GDP and quick growth,Government has to bring reforms in economy.Such type of extreme measures are required to keep inflation at bay.
regards,
Saswato.