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Fundamental Analysis

Inflation

Posted by NIFM
Inflation is defined as a sustained increase in the general level of prices for goods and services. It is calculated as an annual percentage increase. Inflation is now the biggest concern before Indian Economy. All the actions taken by the Indian Govt. are not sufficient to control the inflation. In the recent times prices of all the essential goods are raising due to which common man is not able to survive. The value of rupee is depreciating day by day and it is also causing inflation. It is said that if inflation take place by 3% increase per year, it is good for the economy but above 3% is also dangerouse for the economy. In India for last 3 years inflation control has become a challenge for the Indian Govt. Industries in India expecting RBI to reduce the interest rate and RBI is not cutting interest rate due to high inflation, growth is suffering because of high interest rate as the cost of production is high. Foreign investors are withdrawing their money as they are not finding growth in the Indian market due to which rupee is getting weaker and weaker, to control the inflation people should come forward and should reduce the import and increase the export  otherwise this problem can be more dangerous then ever before.

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