4. Creeping Inflation
The inflation of a nation increases gradually, but
continually, over time
Walking Inflation
When the price rise is moderate. It is a warning signal
for the government to control it before it turns into
running inflation
Running Inflation
A rapid acceleration in the rate of rising prices
more than 10% per annum is referred as Running
Inflation
6. Demand pull inflation (ex: petrol)
Cost push inflation (ex: cement)
Over- Expansion of Money Supply
Causes Of
Inflation
Increase in Population
Expansion of Bank Credit
Black Money
Poor Performance of Farm Sector
8. Dr Rangarajan Chairman, (PMEAC), on inflation in India:
“In other countries, the growth rate is low, but at the same
time inflation is also low. Whereas in our country, while growth
is slowing, inflation remains at a high level.”
Inflation in India
- Overview
Inflation Rate WPI (Feb 2013): 6.84%
Inflation Rate CPI (Feb 2013) : 10.91 %
All time high (Sept 1974): 34.7%
Record low (May 1976) : -11.3
11. Reasons of
Inflation Post
1991
Change In BOP
Low Industrial Growth Sector
Fiscal Deficit
Rupee Depreciation
Current Account Deficit
Increase in oil prices twice during the period
New Printing Of Money
Reduced Interest Rates
Increasing prices – particularly of Oilseeds and Edible oils
Defence expenditures
12.
13.
14.
15. Pre-reforms inflation was mostly because of the factors
like drought, war, global inflation, rupee devaluation, etc.
CONCLUSIONS
In India, post reforms there has been inflation mostly
because of global scenarios which maybe recession or
rising crude oil prices that led to tremendous increase in
the general price level.
With the introduction of reforms like Globalization in
India, the economy has been affected to a larger extent
because of changes happening in the outside world in
both the times whether good or bad.