Friday, January 8, 2010

Impact of Inflation

Inflation: You might have heard this term many times in daily news paper. Government takes necessary steps to keep this value with in the range. Let me give some brief introduction about this term Inflation. Inflation can be measured in numbers by comparing the prices of particular product this year with previous year.
If the product value is increased by 5 Indian Rupees then it means that the inflation positive five. Some time it may go negative if the price of particular product is less than previous year. One thing to be considered is that, you have to keep in mind that there are around thirty products whose prices are compared. These products are constant and calculated daily basis.
It includes agriculture products, electronic products, and home appliances as well. Even though many of us not aware of this inflation this impacts more and more on routine life. The share market value is also depends on this inflation. It is necessary to keep the inflation level in control. The increase in inflation means that the products value increasing this year compares to last year. You might have thing that the negative inflation is good for our nation. If you think in that way then you are wrong, the negative inflation is not good for economy of our nation.

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