Measures Of Inflation And Its Impact On The Indian Economy

Abstract

The purchasing power of money and the state of an economy as a whole are both impacted by inflation, a common economic occurrence. It speaks about the gradual, consistent rise in the average level of prices for products and services through time. Your money will go further in purchasing fewer goods when inflation is high. This could have a detrimental impact on a number of economic factors, including corporate expenses, profitability, investment, consumption, savings, and government policies.

Inflation is one economic aspect linked to price increases that has a long-lasting impact on society and societal problems. Inflation is defined as a consistent rise in the average cost of goods and services over an extended period of time. Each unit of currency may purchase fewer products and services as prices rise. Inflation, then, is the term used to describe a change in the purchasing power of a unit of currency. Price swings encourage an unpredictably atmosphere that is not conducive to development activity. As a result, inflation raises the price of goods relative to prior times. In addition to the price of necessary items, non-essential items like cigarettes and similar ones will also be more expensive. Costs rise with time for everything. Examining how inflation affects the Indian economy and inflation metrics was the goal of the current study. Therefore, we must focus on the experiences of developing and growing nations in order to gain a better understanding of how inflation affects society. This article examines the recent effects of inflation on the Indian economy.