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Inflation

Inflation

Increase in the general price level of goods and services in an economy over a period of time

Inflation- This is a reduction in the purchasing power of money associated with higher prices, as a result of which the monetary circulation is disturbed, there is excess money compared with the real needs of circulation.

Types of inflation
Depending on the role played by the state in the economy, there are two types of inflation.

Open inflation occurs in market economies. Money depreciates, prices rise, and living standards fall. The state regulates inflation and reduces the availability of money to the economy - raising taxes, the key rate, etc.

Hidden inflation occurs when the state strictly regulates prices. Such bans lead to a shortage of goods because the costs of producers rise and they are forced to reduce production volumes. Because of the increase in the cost of production and the inability to compensate for rising costs, the quality of goods suffers.

Timeline

1864
the term "inflation" was introduced

Further Resources

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News

Title
Author
Date
Publisher
Description
October 9, 2021
The Economic Times
Inflation pressures are expected to ease in the current quarter.
October 8, 2021
The Economic Times
The RBI maintained status quo during the fourth bimonthly rate-setting panel that started its three-day deliberations on Wednesday amid rising global commodity prices and a need to contain inflation in India.
Mark Oldacres
September 24, 2021
Express.co.uk
INFLATION is continuing to rise in the UK as a result of the current energy crisis, and increased inflation will mean the value of the state pension will also grow. However, half a million people will not reap the benefits as their income remains frozen.
Larry Elliott Economics editor
September 23, 2021
the Guardian
Analysis: Threadneedle Street is adopting a wait and see policy and keeping interest rates unchanged
September 17, 2021
https://www.outlookindia.com/
RBI's September 2021 bulletin said inflation outcome for August 2021
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