Inflarion
- 2. NAME : OUSHAL KHOSO CLASS : BS-III ROLL NO : 2K15-EVS-29 TOPIC : INFLATION ASSIGNED BY : SIR AZIZ TALPUR CENTER FOR ENVIRONMENTAL SCIENCE’S
- 3. INDEX Inflation What is Inflation Types of Inflation Kinds of Inflation Rate of change of inflation in Pakistan Factor affecting Inflation Conclusion
- 6. What is Inflation ? Inflation: Inflation is when price go up. In economics, inflation is a sustained increase in the general price level of goods and services in an economy over a time of period.
- 7. For Example Miss Natasha goes to super market to buy what she wants in “2016” Bought what she need’s in 10,000 rupees One year later Natahsa return to same super market to buy same thing which she bought last year Rate are increasing of same things 10,500 rupees Means 5% inflation rate increase.
- 8. Example ( 2 ) Increasing in price will cause low purchasing power. Price are increase people purchase few things. Price are increase and the items are decrease.
- 9. Types of Inflation There are two types of inflation. o Demand pull inflation o Cost push inflation Demand pull inflation: A sustained rise in the price level caused by increase in aggregate demand.
- 10. Cost push inflation: Increase in cost of production, it could be caused by rising energy and commodity price !
- 12. Kinds of inflation Two kinds of inflation Anticipated inflation: The inflation rate that, we believe will occur. Unanticipated inflation: Inflation at a rate after comes as a surprise.
- 13. Rate of change of inflation in Pakistan • It means what are the changing in the prices of inflation if Pakistan. Core consumer price in Pakistan increase 5.20% in February of 2018 over the same month in the previous year. Core inflation rate in Pakistan averaged 7.47% from 2010 to 2018, reaching an all time high of 11.40% in June of 2012 and record low of 3.40% in September of 2015.
- 15. Factor affecting Inflation Investment: Its plays an important role in producing inflation. At the moment of investment the economy’s stock of wealth and money expend and as result in the Inflation.
- 16. Interest Rate: Interest rate in Pakistan was last registered at 6.00% in 03/30/2018 and deposit interest rate went down to 4.83% from 6.00% in 2015
- 17. Purchasing Power: Decrease in the purchasing power due to increase in inflation rate.
- 18. Unemployment: The population of Pakistan is increasing at the rate of 1.9 per year, due to which more than 1 million people enter the job market each year. Hence rate of unemployment is increasing year after year.
- 19. CONCLUSION In reality, low inflation rate and upward economic growth is never possible. Nevertheless, low inflation rate means slow economic growth. Whenever money is in excess, there is bidding by consumers due to which the cost of goods escalates.