UNIQUE BUSINESS IDEAS
When prices of goods gradually increase over time across the economy, and that erodes purchasing power for individuals and businesses.
Note: It is not the price hike of a single or few items, it has to be either for the entire economy, industry, or sector
The best way to determine inflation. In 2021, your average grocery spending was 10K per month, now in 2022 for similar stuff you spend an average of 12K per month. That indicates inflation in the FMCG sector
Healthy economy gives not more than 2% inflation, for economists that situation is considered as pricing stability
When there is pricing stability and inflation does not influence purchasing power negatively, encourage people to spend more boosting the economy
When demand is high but supply is less the price of the product goes up, and if the situation prolongs brings inflation to that sector
When the price of input goods and services for production goes high consistently for a longer period, the producer hike the price of the finished goods & service to pass the burden to end users
USA 8.2 CHIANA 2.8 UK 9.9 GERMANY 10 RUSSIA 13.7 INDIA 7.4
As per RBI forecast, consumer price index inflation will remain at an average of 6.7% for FY 22 & 23 and will slow down in FY 23 & 24 at 5.2%