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Data Processing and Analysis Guide

The document discusses different types and causes of inflation including demand-pull inflation, cost-push inflation, and scarcity-led inflation. It provides data on India's inflation rate in June 2011 of 12.62% and projections for it to gradually rise to 6% by March 2012. Causes of inflation mentioned include excess money supply, rises in costs and prices, and higher government taxes and spending.

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Srijit Majumder
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6 views14 pages

Data Processing and Analysis Guide

The document discusses different types and causes of inflation including demand-pull inflation, cost-push inflation, and scarcity-led inflation. It provides data on India's inflation rate in June 2011 of 12.62% and projections for it to gradually rise to 6% by March 2012. Causes of inflation mentioned include excess money supply, rises in costs and prices, and higher government taxes and spending.

Uploaded by

Srijit Majumder
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd

Presented by: Srijit B.

majumder Bandana Chakraborty Adhyatma Prakash Kinga Dema

Inflation is a persistent rise in the general level of prices of goods and services in an economy over a period of time.

Measuring through wholesale price index numbers

(PINs) : (PINt-PINt-1)/PINt x 100

By comparing change in GNP deflator:

Nominal GNP/Real GNP

1.

Rate based types of inflation: Moderate inflation Galloping inflation Hyper inflation Suppressed inflation

2. Cause based types of inflation:

Demand pull inflation Cost-push inflation Scarcity led inflation

When prices tend to rise due to change in the composition of GDP, it is not inflation Price rise due to qualitative change in products is not inflation Short-run rise in price due to sudden increase in demand & or decrease in supply is not inflation Price rise after depression or recession is not inflation

The inflation rate in India was last reported at 12.62

percent in june of 2011. The rate of inflation will remain elevated for the first half of the fiscal year. The rate will gradually rise to 6 % by march 2011. According to Mr. Subbarao, the under-projection of inflation is due to larger than expected rise in the price of crude oil globally. Another cause of inflation is smaller than decline in food prices despite a normal monsoon.

Depends on the need & the absorption capacity of a

country. 1-2 % in developed countries. 4-6 % in developing countries.

Excess money supply Rise in labor cost Rise in the cost of imported raw materials Higher indirect taxes imposed by the government Increase in disposable income Increase in consumer spending

Depreciation of the currency Affects the time value of money Changes the allocation of income Hoarding Existing creditors will suffer Lowers national savings Benefits the lenders

Bank rate policy Variable reserve ratio Open market operations Fiscal policy Price and wage policy Indexation

Rate of inflation in countries around the globe:

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