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Tuesday, January 18, 2011

Understanding the concept of inflation

Inflation is a term that is generally used when the price of goods/services goes up. 

On account of this, the buying power reduces. 

At one time you could go and watch a movie for only Rs.2. But that same movie ticket today is costing around Rs. 100 to Rs.200. 

Rice at one time was costing around Rs 5 to Rs. 10 and today the price for Rice for 1 kilo is around Rs 20 to Rs.30 per kilo.

This shows the value of money is coming down on account of inflation.





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