Inflation

Topic: Inflation

Sector: Economics

On the subject of Inflation:

Inflation –It’s have both positive and negative effects on a country. Negative effects of inflation take account of loss in strength in the genuine price of money and other economic items.

Improbability about upcoming inflation may dispirit investment and savings & high inflation may guide to shortage of supplies if trades start notice out of concern that prices will boost in the future. Positive effects take account of an improvement of fiscal recessions and debt relief by dropping the genuine level of debt.

What went before?

Twenty years back, my parents are used to pay my fifth standard fees for the entire academic years was 300INR in one the cities in Tamilnadu, India.

Fifteen years back, I used to fill petrol to my bike just paying 15INR per liter and used to buy milk just paying 5INR per liter.

A salary person can run his family by getting 150INR as per month salary.

Current scenario:

Currently, the real values are 25000INR for elementary school admission, 50INR per liter petrol and 26INR per liter of milk.

The only way to tackle with the current situation is to invest money on a monthly basis which provides 15-20% of compounded yield per annum.

The reason why we are investing our money for our future is to over take country’s inflation and over a period of time, it should delivery better returns so that the inflation and interest will adjust.

Expectations:

Predicting future inflation rates requires a statistical approach and some information about the financial system. So if you desire to forecast the rates in advance then brush up with your data and economic.

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Note: Above said information is drafted by publisher up to his/her knowledge. This may vary with original.