What Is Retail Inflation
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The Availablity of Currency in a Given Period is Called Inflation.
Explanation:
In simple words, the growth of prices relative to the available currency in a given period is called inflation or inflation. In a related way, the purchasing power of rupees is much less today than before.
Let us understand this better by using an example. Suppose today you buy one plate of Chole Masala for Rs.100 / -. If you consider annual inflation as 10%, leave it the same, next year you will be able to buy for Rs.110 / -. If your income does not increase at least comparatively, you will not be in a position to buy it or other items of this type, right?
Inflation confronts investors as to what the rate of return of their investments should be in order to maintain their current standard of living.
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