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Causes of Inflation (in Hindi)
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Causes of inflation

Aartee Mishra is teaching live on Unacademy Plus

Aartee Mishra
Delhi University Topper Post Graduated in History Founder - Rank secure IAS Academy 4 Years Experience Use code : RANK10 for Mentorship

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  1. Daily Lecture Series Ramesh Singh's) A brief Summary of Indian Economv unacadeny By Aartee Mishra Inflation and Business Cycle Hindi

  2. lam Aartee Mishra Graduated from Delhi University, Topper in all my semesters, Pursuing P.G and preparing for CSE. 2 Years of teaching experience of General Studies for competitive examination Have been teaching on Unacademy Plus

  3. Comprehensive course of Art and Culture with Brief Indian History Comprehensively cover entire Art and Culture with Brief History Aartee Mishra of India Elaborately explain topics 24 detailed lessons covering all the essential topics related to History UPSC Civil Services Prelims and Mains Examination otho Art and Culture with Brief History from NCERT books Medieval History, Art & Culture from Tamil Nadu History book Course Starting from 18h June, ruam-12pm on At the end of the program adept and able to solve the exam Unacademy Plus based test papers

  4. Why Inflation Occurs > Demand-Pull Inflation A mis-match between demand and supply pulls up prices. Either the demand increases over the same level of supply, or the supply decreases with the same level of demand and thus the situation of demand-pull inflation arise. This was a Keynesian idea Depending upon the situation, the goods in short supply are imported interest on loans increased and wages revised Cost-Push Inflation An increase in factor input costs (i.e., wages and raw materials) pushes up prices. The price rise which is the result of increase in the production cost is cost-push inflation Today, the governments of the world use many tools to check such inflations-reducing excise and custom duties on raw materials, wage revisions, etc

  5. Measures to Check Inflation The governments resort to the following options to check rising inflation: (i) As a supply side measure, the government may go for import of goods which are in short-supply-as a short-term measure Govemments go on to increase the production to matching the level of demand. Storage, transportation, distribution, hoarding are the other aspects of price management of this category As a cost side measure, governments may try to cool down the price by cutting down the production cost of goods showing price rise with the help of tax breaks-cuts in the excise and custom duties The governments may take recourse to tighter monetary policy to cool down either the demand-pull or the cost-push inflations

  6. OTHER VARIANTS OF INFLATION Bottleneck Inflation This inflation takes place when the supply falls drastically and the demand remains at the same level. Such situations arise due to supply- side accidents, hazards or mismanagement which is also known as 'structural inflation'. This could be put in the 'demand-pull inflation' category Core Inflation This nomenclature is based on the inclusion or exclusion of the goods and services while calculating inflation. Popular in western economies, core inflation shows price rise in all goods and services excluding energy and food articles. In India, it was first time used in the financial year 2000-01 when the government expressed that it was under control-it means the prices of manufactured goods were under control Basically, in the western economies, food and energy are not the problems for the masses, while in India these two segments are of most vital importance for the common people


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