What is inflation...how it affect normal life

Question

What is inflation...how it affect normal life

Answer 1

Inflation is the amount a price increases of all goods and products per year. Generally the amount your wages increase every year should match inflation therefore in therory no one loses out.

However when prices rise alot (petrol) employers cant match these rises with wage rises so therefore people start to lose money.

Answer 2

inflation represents the increase in the product price due to various reasons

mostly demand supply is the factor,

in india for the agri. products the monsoon is major factor.

Answer 3

the raise in the face value of good is called inflation...

it may ibe increase in the rupee value ertc....

Answer 4

Inflation is when our gold value per currency decreases Fort Knox is stored all the gold of America is stored and our bills are just certificates of that. So the value of our currency compared to the other countries currency will go down therefore increasing the cost any items being imported.

Answer 5

inflation is the increase in the prices of certain commodities .. in india inflation is calculated with WPI i.e. wholesale price index. It affects normal life as things get costlier... first you were able to buy a certain item for Rs.10 but now the same item,due to inflation has increased to Rs.12 so your expenditure increases n savings decreases. Therefore it is said the value of money depreciates with inflation.

Answer 6

when money isnt worth as much as it used to be. basically, everyone gets just a little more poor because the cost of living increases