DO YOU KNOW ABOUT INFLATION??

Inflation We often see this word on TV and in newspapers. What is deflation? Let us now find out what kind of impact this will have on our economy.

 Inflation is the rate at which the prices of the goods or services we consume on a daily basis increase. This inflation is usually measured in percentages. As the demand for goods increases and supply dwindles, so do the prices of these goods. That is the reason for this inflation.

 The price of a commodity which was once Rs. 5 is now Rs. 50 due to inflation. At present in our country this inflation is 5%. This means that commodity prices have risen by about 5% this year compared to last year.

 But once in a while this inflation rises exponentially and the situation goes awry. An example of such is the fact that in 2008 the prices of all commodities in Zimbabwe doubled every 24 hours. You need more money to buy things that have grown so much. The Zimbabwean government has started printing more money for it.

 So almost everyone has become a trillionaire according to the currency there. But what a profit commodity prices were in the billions. What eventually turned out was that at least they had no paper left to print the money.

 Thus, inflation in Zimbabwe rose by 1,12,00,000% in 2008, which means that commodity prices have risen sharply.

 Nor can it be said that inflation is good or bad. A slight increase in these commodities means that the rise in inflation to a limit will help the country's economy to grow. But if it exceeds the limit, the country's economic situation will deteriorate.

 An increase in commodity prices is called inflation and a decrease in commodity prices is called deflation. Suppose this deflation increases every year, which means that if commodity prices fall sharply, everyone will no longer be able to buy goods later in the year, thinking that they will buy again later in the year. With it the prices of goods go down. Companies will suffer if no one buys goods like this. Reducing jobs to reduce those losses, or firing those who have. This is not even good for the country. So the government of the country regulates this inflation without increasing it as well as decreasing it.