Inflation basically means increase in price levels of almost all commodities in the market.
This is truly undesirable and creates a great impact on the lives of common man. One finds it difficult to meet ends. The consumer price index is what is usually considered as a measure for inflation.
Impacts of Inflation:
Inflation normally hurts buying power, the reason being that you would have to pay more for fewer items. Inflation could be on the positive side only for those owning assets like a house or stocks which may fetch some good returns. Apart from that, it gets difficult for purchasing items as you happen to get less for more expenditure. This would increase the cost of living, thereby making living standards low.
One of the major reasons for price inflation happens when a sudden increase happens in oil prices, and this would result in increase in prices of a range of domestic products. This creates a huge demand of products and thereby leads to more increase in prices. There are many effects that are caused because of inflation. One effect is the economic growth, where business gets reduced and thus investments also get altered. Inflation could be controlled by only an attempt in regulating the interest rates.
It is observed that inflation is soaring as years pass and the common man is finding it difficult to meet ends. With incomes not increasing and expenses being very high, the concerned officials need to look into the matter and try making situations, so that the common man would find a bit of space for breathing in midst of his expenses.There are various strategies that have been tried and tested by various countries to bring down the inflation rate and India could take some expert advice and work on it to make things better.