article on growing inflation in India..
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The Reserve Bank of India's (RBI) bi-monthly monetary policy announced on April 5 maintained a status quo on rates but it contains a strange contradiction. This time, the RBI has projected Consumer Price Index-based inflation or CPI inflation to follow a downward trend and remain in the 4.7%-5.1% band. In February, however, the Monetary Policy Committee (MPC) of the central bank had forecast that the CPI will be in the 5.1%-5.6% range for the first half of 2018-19.
Having lowered inflation expectations, the RBI has raised its GDP growth projections by 80 basis points (bps) to 7.4% from 6.6%.
The Reserve Bank of India's (RBI) bi-monthly monetary policy announced on April 5 maintained a status quo on rates but it contains a strange contradiction. This time, the RBI has projected Consumer Price Index-based inflation or CPI inflation to follow a downward trend and remain in the 4.7%-5.1% band. In February, however, the Monetary Policy Committee (MPC) of the central bank had forecast that the CPI will be in the 5.1%-5.6% range for the first half of 2018-19.
Having lowered inflation expectations, the RBI has raised its GDP growth projections by 80 basis points (bps) to 7.4% from 6.6%.
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sorry, but i didn't understand anything at all...
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Inflation refers to the rise in the price of goods and fall in the value of money. Inflation refers to the problem of rising prices.
The problem has been with us for a long time now. The trend of rising prices in India has, in time, aroused dismay, consternation and anger.
Current situation
The current rate of inflation is alarming. The rapidly increasing prices in India has been a topic of discussion at all levels during these days.
Economists and some other people have been attempting scientific analyses to:
determine how far the prices have risen,
why they have risen,by what methods they can be held in check, and
how far those methods can be successfully.
While all this has been going on, people have been patiently suffering, and for all we know, will continue to suffer for a long time.
How to control Inflation in India?
Inflation can be controlled by close collaboration and effort of both the government and consumer.
Higher Interest rates: Monetary policy can have an effect on inflation. At a time when a country witnesses high inflation rates, the Government often increases the interest rates. High interest rate is a mechanism to control inflation.
Suitable Distribution System: Inflation directly effects the life of the common people. In order to reduce the danger of runaway price increases in the future, it is very necessary that a suitable distribution system should be developed
Proper Checks: There should be a system for proper checks to ensure that traders does not charge excess money for the commodities.
Control Hoarding: Some traders indulge in hoarding of goods. They create artificial demand for the goods and charge high prices for the goods. The government should ensure that such malpractices doesn’t exist in society.
Price Control: The prices of all the essential commodities of daily use , such as rice, wheat, potato, milk, etc should be fixed and controlled. And adequate measures should be taken to ensure smooth supply of these items.
Buy at Fair Price only: Some consumers allow the greedy trader to charge high prices for essential items. They pay very high prices for fear of inadequate supply in futur
The problem has been with us for a long time now. The trend of rising prices in India has, in time, aroused dismay, consternation and anger.
Current situation
The current rate of inflation is alarming. The rapidly increasing prices in India has been a topic of discussion at all levels during these days.
Economists and some other people have been attempting scientific analyses to:
determine how far the prices have risen,
why they have risen,by what methods they can be held in check, and
how far those methods can be successfully.
While all this has been going on, people have been patiently suffering, and for all we know, will continue to suffer for a long time.
How to control Inflation in India?
Inflation can be controlled by close collaboration and effort of both the government and consumer.
Higher Interest rates: Monetary policy can have an effect on inflation. At a time when a country witnesses high inflation rates, the Government often increases the interest rates. High interest rate is a mechanism to control inflation.
Suitable Distribution System: Inflation directly effects the life of the common people. In order to reduce the danger of runaway price increases in the future, it is very necessary that a suitable distribution system should be developed
Proper Checks: There should be a system for proper checks to ensure that traders does not charge excess money for the commodities.
Control Hoarding: Some traders indulge in hoarding of goods. They create artificial demand for the goods and charge high prices for the goods. The government should ensure that such malpractices doesn’t exist in society.
Price Control: The prices of all the essential commodities of daily use , such as rice, wheat, potato, milk, etc should be fixed and controlled. And adequate measures should be taken to ensure smooth supply of these items.
Buy at Fair Price only: Some consumers allow the greedy trader to charge high prices for essential items. They pay very high prices for fear of inadequate supply in futur
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