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??INFLATION??
INFLATION
Rise
in the general level of prices. Decline in the real value of money. Inflation has adverse effects.
$AVING $ INVE$MENT
MONEY SHOULD BE INVESTED MONEY SHOULD NOT BE KEPT IN SAFE MINIMUM RISKS AND MAXIMUM RETURNS
CHARACTERISTICS OF WPI
CALCULATION
OF WPI
Say for example WPI on Jan 1st 1990 is 106.09 and WPI of 1st Jan 1991 is 109.72 then inflation rate for the year 1991 is, [109.72 106.09]/ 106.09 * 100 = 3.42% and we say the inflation rate for the year 1991 is 3.42%
PRIMARY ARTICLES: Food Article , Non-Food Articles, NonMinerals. Minerals. Fuel, Power, Light & Lubricants Manufactured Products : Food Products, Beverages, Tobacco & Tobacco Products, Textiles, Wood & Wood Products, Paper & Paper Products, Leather & Leather Products, Rubber & Plastic products, Chemicals & Chemical Products, Non-Metallic Mineral products, Basic NonMetals, Alloys & Metal Products, Machinery & Machine tools, Transport Equipment & parts
ARTICLE
GRAINS COFFEE CEREALS
OIL SEEDS
LIGHT
LUBRICANTS
Manufactured Products
FOOD PRODCUTS TOBACCO PRODUCTS BEVERAGES
PAPER PRODUCTS
TEXTILE
WOOD PRODUCTS
Manufactured Products
LEATHER PRODUCTS PLASTIC PRODUCTS CHEMICAL PRODUCTS
TRANSPORT EQUIPMENT
ALLOYS, METALS
TOOLS
NEEDS
USEFUL
CPI Industrial Workers CPI Urban NonNonManual Employees CPI Agricultural labourers; and CPI Rural labour
??DEFLATION?? ??DEFLATION??
DELAY PURCHASE AS A SPECULATION THAT PRICE WOULD FALL FUTHER OPPOSITE TO INFLATION RATE: INFLATION (-TIVE)
HYPERINFLATION
Wipes out the purchasing power of private and public savings. Effect the mass population Wider than inflation (eg:Zimbabwe)
EXAMPLE OF HYPERINFLATION
HOTEL BILLS
FARMERS
AMUL BUTTER(100GM)
CROCIN
WIBS BREAD
Mobiles
LAPTOPS