{"id":11277,"date":"2022-07-12T16:30:35","date_gmt":"2022-07-12T11:00:35","guid":{"rendered":"https:\/\/blogs.univest.in\/?p=11277"},"modified":"2022-10-13T12:52:57","modified_gmt":"2022-10-13T07:22:57","slug":"inflation-rate-monetary-measures-and-controls","status":"publish","type":"post","link":"https:\/\/univest.in\/blogs-2\/inflation-rate-monetary-measures-and-controls\/","title":{"rendered":"Inflation rate: monetary measures and controls"},"content":{"rendered":"

The loss of a currency’s relative buying power over time is referred to as inflation. The increase in the average price level of a basket of chosen goods and services over time in an economy can provide a quantitative approximation of the rate at which the reduction in buying power happens. A unit of currency essentially buys less due to the increase in pricing, which is sometimes stated as a percentage.<\/p>\n

Deflation, on the other hand, is characterised by a rise in the buying power of money and a decrease in prices. For e.g A shirt is initially priced at Rs 1000, taking the inflation rate of 6% p.a., after one year the same shirt would cost around Rs1060 without any change in size and material.<\/p>\n

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