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MEANING
Inflation means persistent increase in the level
of consumer prices or a persistent decline in
the purchasing power of money, caused by an
increase in available currency & credit beyond
the proportion of available goods & services.
TYPES OF INFLATION
REPRESSED INFLATION
METHODS TO MEASURE
INFLATION
Consumer price index (CPI)
Deficit financing
Continues-:
Industrial disputes
Natural calamities
Artificial scarcity
Increase in export
Global factors
(impact high oil price)
Fluctuating agricultural growth
Neglecting the production of consumer goods
Item
1994-95
2004-05
to2005
2006
2007
2008 2009
2010
Average
Januar 2006-09
y
1. All commodities
5.90
4.74
4.82
4.82
9.12
2.01
8.54
5.19
2. Non-food commodities
6.02
5.37
4.72
4.54
9.55
-1.76
4.53
4.27
3. Food articles
5.91
3.94
6.83
7.02
6.64
12.32
17.41
8.20
4. Food products
5.33
1.58
2.55
3.43
9.80
13.79
22.55
7.39
2.97
5.09
5.60
7.87
12.90
19.42
7.86
Foodgrains
5.54
3.83
9.71
6.27
6.37
14.14
17.89
9.12
Cereals
5.57
3.68
6.63
6.97
7.20
12.96
13.69
8.44
Pulses
5.46
5.04
32.05
2.14
1.30
21.81
45.62
14.33
Rice
5.00
4.01
2.13
6.05
8.97
15.96
12.02
8.28
Wheat
5.93
1.08
12.99
6.77
5.06
6.83
14.86
7.91
Oilseeds
5.89
-6.11
-3.96
26.58
17.46 0.92
10.05
10.25
7.47
7.51
2.24
6.49
5.94
11.77
8.33
6.61
Dairy products
5.20
0.11
4.20
6.08
8.38
6.12
12.87
6.19
Milk group
5.57
0.73
4.48
8.17
7.87
8.93
13.99
7.36
6.46
9.46
6.72
6.38
3.75
14.44
30.71
7.82
Edible oils
4.85
-7.19
1.23
13.11
12.52 -6.59
-1.17
5.07
Sugar
4.06
15.09
4.83
-14.69
5.62
58.94
8.02
36.34
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