Wednesday, August 26, 2009


Inflation - You might have heard this term in all news channels as well as in all news papers. Many of us don't know about this at all. But, inflation is the one, entire economic growth of a nation mainly depends on this. Inflation is calculated by just comparing the price of some products that we are using in day to day life. Higher inflation doesn't mean that economy of a nation is growing at the same time less inflation doesn't mean the same. It should be constant term. It is given in integer constant. We had negative inflation at one point of time even though commodity prices are very high compare to last year. Here is simple example to understand this inflation. Let the price of one litre oil is 75.00 last year and now it is available at the cost of 70.00 then it means that, the inflation is -5.00, but they don't consider only one item to calculate this inflation actually it is around 30 products to be considered while finding inflation rate. It should be normal for better economic growth.

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