• Skip to main content
  • Skip to secondary menu
  • Skip to primary sidebar

Ambition IAS

Online IAS Coaching, Preparation, Test Series & Current Affairs

  • KPSC Material
    • General FAQ
    • Books List
      • KAS Prelims Books List
      • KAS Mains Kannada Book List
      • KAS Mains English Book List
    • Free Downloads
      • KAS Prelims Preparation Time table
      • Karnataka Economic Survey (2013-14)
      • Karnataka Economic Survey (2014-15)
      • Previous Question Papers
    • Buy KPSC Prelims Material
      • Buy KAS Prelims Study Material
    • KPSC Mains Study Material
      • KPSC Mains Study Material
  • Mock Tests
    • Prelims Mock Test
      • Free Mock Tests
      • Paid Test Series
    • Mains Mock Test
      • Daily Free Questions (Updated on WhatsApp Group)
      • Paid Test Series
  • Join WhatsApp Group
  • KPSC Mains Test Series
  • UPSC 2015 Prelims MCQs
  • Doubts Corner
  • Contact Us

What is Inflation ?

April 12, 2014 by AmbitionIAS Leave a Comment

  • The rate at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling.
  • Central banks attempt to stop severe inflation, along with severe deflation, in an attempt to keep the excessive growth of prices to a minimum.
  • As inflation rises, every rupee will buy a smaller percentage of a good. For example, if the inflation rate is 2%, then a 10 INR pack of gum will cost 10.2 INR in a year.
  • As inflation rises, purchasing power decreases, fixed-asset values are affected, companies adjust their pricing of goods and services, financial markets react and there is an impact on the composition of investment portfolios.

Filed Under: Economy

Primary Sidebar

Subscribe To Newsletter





Like us on Facebook

Copyright © 2023 · Magazine Pro on Genesis Framework · WordPress · Log in