Question

Why cannot you avoid the significance of inflation?

Answer 1

Answer: Inflation is defined as increase in the price level of general goods & services. And Its most due to: demand increase, supply decrease, which cause increase in general pricing. Increase in production cost (& material cost) will decrease supply. ... so a low rate of inflation will provide safety barrier against this

Answer 2

It can not be avoided as it gradually helps to boost both demand and consumption.

• Inflation is an increase in price levels. When it serves to raise consumer demand and spending, which drives economic growth, it is seen as a good.
• While sometimes it is necessary to prevent deflation, it can also be a drag on the economy. It is said to lower the significant borrowing costs and also reduces unemployment.
• However, It also cuts down the buying power, or the amount of anything that can be bought with money, thereby stimulating people to spend and store up on commodities depreciating more slowly.