Inflation

definition

R.P KENT says that:

inflation is nothing more then a sharp upward moment in the price level.

W.ACOULBORN :

inflation means too much money cashing too few goods.

In my words increase in the prices of common goods due to increase in money circulation.

Types of inflation

Demand Pull inflation

Cost push inflation

Demand pull inflation

The increasing demand of goods and

services bring demand pull inflation.

• Demand supply prices inflation

Effect of inflation

Currency value depreciate against other countries

Due to excess of Inflation the relevant country

Exports decline and imports increased.

as result the slandered of life fall due to increase in price.

Poverty increase.

Cost push inflation

Increase in cost of production goods is major factor of cost push inflation.it is occur due to increase in cost of factor of production.

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