{"id":6642,"date":"2024-06-29T11:45:48","date_gmt":"2024-06-29T11:45:48","guid":{"rendered":"https:\/\/wp-api.pocketful.in\/blog\/?p=6642"},"modified":"2025-03-04T04:45:05","modified_gmt":"2025-03-04T04:45:05","slug":"inflation","status":"publish","type":"personal-finance","link":"https:\/\/wp-api.pocketful.in\/blog\/personal-finance\/inflation\/","title":{"rendered":"What is Inflation? Meaning, Types, &amp; Risks"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">Inflation is a difficult concept but we\u2019ll try to explain it with an example: Have you ever visited a supermarket to get groceries and discovered that the number of things you could buy earlier cannot be bought with the same amount of money today? This phenomenon is called \u2018Inflation\u2019.&nbsp;&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This blog will explore inflation\u2019s causes, effects, and other aspects.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-transparent ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/wp-api.pocketful.in\/blog\/personal-finance\/inflation\/#What_is_Inflation\" title=\"What is Inflation?\">What is Inflation?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/wp-api.pocketful.in\/blog\/personal-finance\/inflation\/#Types_of_Inflation\" title=\"Types of Inflation\">Types of Inflation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/wp-api.pocketful.in\/blog\/personal-finance\/inflation\/#Causes_of_Inflation\" title=\"Causes of Inflation\">Causes of Inflation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/wp-api.pocketful.in\/blog\/personal-finance\/inflation\/#Measures_to_Control_Inflation\" title=\"Measures to Control Inflation\">Measures to Control Inflation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/wp-api.pocketful.in\/blog\/personal-finance\/inflation\/#Cases_of_High_Inflations_in_India\" title=\"Cases of High Inflations in India\">Cases of High Inflations in India<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/wp-api.pocketful.in\/blog\/personal-finance\/inflation\/#Risks_of_High_Inflation\" title=\"Risks of High Inflation\">Risks of High Inflation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/wp-api.pocketful.in\/blog\/personal-finance\/inflation\/#Cases_of_Low_Inflations_in_India\" title=\"Cases of Low Inflations in India\">Cases of Low Inflations in India<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/wp-api.pocketful.in\/blog\/personal-finance\/inflation\/#Cons_of_Low_Inflation\" title=\"Cons of Low Inflation\">Cons of Low Inflation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/wp-api.pocketful.in\/blog\/personal-finance\/inflation\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/wp-api.pocketful.in\/blog\/personal-finance\/inflation\/#Frequently_Asked_Questions_FAQs\" title=\"Frequently Asked Questions (FAQs)\">Frequently Asked Questions (FAQs)<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\" id=\"h-what-is-inflation\"><span class=\"ez-toc-section\" id=\"What_is_Inflation\"><\/span>What is Inflation?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Expressed as a percentage, inflation is the rise in the cost of goods and services. As commodity prices rise, money\u2019s purchasing power declines.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Let\u2019s understand with the help of an example \u2013 when you go to the store and ask for a packet of one liter milk, you will be charged 55 INR instead of the 50 INR you used to pay two years ago. This 5 INR rise is the result of inflation over time.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-types-of-inflation\"><span class=\"ez-toc-section\" id=\"Types_of_Inflation\"><\/span>Types of Inflation<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-image aligncenter size-large is-resized\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"1024\" src=\"https:\/\/cms-resources.pocketful.in\/blog\/wp-content\/uploads\/2024\/06\/Growth-analytics-rafiki.png\" alt=\"Types of Inflation\" class=\"wp-image-6686\" style=\"aspect-ratio:1.3333333333333333;object-fit:cover;width:429px;height:auto\" srcset=\"https:\/\/cms-resources.pocketful.in\/blog\/wp-content\/uploads\/2024\/06\/Growth-analytics-rafiki-1024x1024.png 1024w, https:\/\/cms-resources.pocketful.in\/blog\/wp-content\/uploads\/2024\/06\/Growth-analytics-rafiki-300x300.png 300w, https:\/\/cms-resources.pocketful.in\/blog\/wp-content\/uploads\/2024\/06\/Growth-analytics-rafiki-150x150.png 150w, https:\/\/cms-resources.pocketful.in\/blog\/wp-content\/uploads\/2024\/06\/Growth-analytics-rafiki-768x768.png 768w, https:\/\/cms-resources.pocketful.in\/blog\/wp-content\/uploads\/2024\/06\/Growth-analytics-rafiki-1536x1536.png 1536w, https:\/\/cms-resources.pocketful.in\/blog\/wp-content\/uploads\/2024\/06\/Growth-analytics-rafiki-96x96.png 96w, https:\/\/cms-resources.pocketful.in\/blog\/wp-content\/uploads\/2024\/06\/Growth-analytics-rafiki.png 2000w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Inflation in the economy can take many different forms, some of which are listed below:&nbsp;<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li><strong>Creeping Inflation <\/strong>\u2013 This kind of inflation, which is the mildest of all, is necessary to keep the economy growing.&nbsp;<\/li>\n\n\n\n<li><strong>Walking Inflation \u2013<\/strong> This indicates concern because the inflation rate is typically higher than the rate of creeping inflation.&nbsp;<\/li>\n\n\n\n<li><strong>Galloping Inflation \u2013 <\/strong>The prices of products and commodities rise quickly under this inflationary environment, usually at a pace higher than 10%.&nbsp;<\/li>\n\n\n\n<li><strong>Hyperinflation \u2013 <\/strong>Hyperinflation is extremely worrisome as it constitutes an ever increasing rate of inflation. This is where prices for goods and commodities increase by more than 50% in a month. Political unrest and high currency depreciation are the usual causes of extreme inflation.&nbsp;<\/li>\n<\/ol>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Read Also: <\/strong><a href=\"https:\/\/www.pocketful.in\/blog\/cost-inflation-index\/\">Cost Inflation Index (CII) For FY 2023-24: Index Table, Meaning, Calculation<\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-causes-of-inflation\"><span class=\"ez-toc-section\" id=\"Causes_of_Inflation\"><\/span>Causes of Inflation<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The following are the primary causes of inflation:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>High amounts of money in circulation in the economy leads to an unexpected rise in demand for goods and services, resulting in the prices rising.&nbsp;<\/li>\n\n\n\n<li>High amounts of government investment and spending also leads to inflation.&nbsp;<\/li>\n\n\n\n<li>Rising raw material costs have the potential to drive prices upward.&nbsp;<\/li>\n\n\n\n<li>The costs of products and services also rise in response to government tax increases.&nbsp;<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-measures-to-control-inflation\"><span class=\"ez-toc-section\" id=\"Measures_to_Control_Inflation\"><\/span>Measures to Control Inflation<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-image aligncenter size-large is-resized\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"1024\" src=\"https:\/\/cms-resources.pocketful.in\/blog\/wp-content\/uploads\/2024\/06\/Features-Overview-rafiki-1.png\" alt=\"Measures to Control Inflation\" class=\"wp-image-6690\" style=\"aspect-ratio:1.3333333333333333;object-fit:cover;width:323px;height:auto\" srcset=\"https:\/\/cms-resources.pocketful.in\/blog\/wp-content\/uploads\/2024\/06\/Features-Overview-rafiki-1-1024x1024.png 1024w, https:\/\/cms-resources.pocketful.in\/blog\/wp-content\/uploads\/2024\/06\/Features-Overview-rafiki-1-300x300.png 300w, https:\/\/cms-resources.pocketful.in\/blog\/wp-content\/uploads\/2024\/06\/Features-Overview-rafiki-1-150x150.png 150w, https:\/\/cms-resources.pocketful.in\/blog\/wp-content\/uploads\/2024\/06\/Features-Overview-rafiki-1-768x768.png 768w, https:\/\/cms-resources.pocketful.in\/blog\/wp-content\/uploads\/2024\/06\/Features-Overview-rafiki-1-1536x1536.png 1536w, https:\/\/cms-resources.pocketful.in\/blog\/wp-content\/uploads\/2024\/06\/Features-Overview-rafiki-1-96x96.png 96w, https:\/\/cms-resources.pocketful.in\/blog\/wp-content\/uploads\/2024\/06\/Features-Overview-rafiki-1.png 2000w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">The government uses a variety of monetary and non-monetary tools to control inflation, some of which are listed below:&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-medium-font-size\" id=\"h-monetary-measures\">Monetary Measures<\/h3>\n\n\n\n<ol class=\"wp-block-list\">\n<li>A nation&#8217;s central bank can raise interest rates, which increases the cost of loans and reduces consumer spending on goods and services.&nbsp;<\/li>\n\n\n\n<li>The Reserve Bank can ask the banks to increase their reserves, which decreases the supply of money in the market, leading to a reduction in money flow.<\/li>\n\n\n\n<li>The Reserve Bank can also sell government securities to pull money out of the hands of the investors, in order to reduce the money supply.&nbsp;<\/li>\n<\/ol>\n\n\n\n<h3 class=\"wp-block-heading has-medium-font-size\" id=\"h-fiscal-measures\">Fiscal Measures<\/h3>\n\n\n\n<ol class=\"wp-block-list\">\n<li>The <a href=\"https:\/\/wp-api.pocketful.in\/blog\/government-revenue-expenditures\/\">government can reduce spending<\/a> on several initiatives, which lower the demand for commodities.&nbsp;<\/li>\n\n\n\n<li>The government can raise taxes on businesses and individuals, which lower people&#8217;s disposable income.&nbsp;<\/li>\n<\/ol>\n\n\n\n<h3 class=\"wp-block-heading has-medium-font-size\" id=\"h-other-measures\">Other Measures<\/h3>\n\n\n\n<ol class=\"wp-block-list\">\n<li>The government can also lower inflation by increasing the production of goods and services.&nbsp;<\/li>\n\n\n\n<li>Importing commodities that are in limited supply domestically can also assist in reducing inflation.&nbsp;<\/li>\n\n\n\n<li>Additionally, they can regulate pricing by imposing a price cap on necessities.&nbsp;<\/li>\n<\/ol>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-cases-of-high-inflations-in-india\"><span class=\"ez-toc-section\" id=\"Cases_of_High_Inflations_in_India\"><\/span>Cases of High Inflations in India<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-image aligncenter size-large is-resized\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"1024\" src=\"https:\/\/cms-resources.pocketful.in\/blog\/wp-content\/uploads\/2024\/06\/Charts-pana-3-1.png\" alt=\"Cases of High Inflations in India\" class=\"wp-image-6696\" style=\"width:380px;height:auto\" srcset=\"https:\/\/cms-resources.pocketful.in\/blog\/wp-content\/uploads\/2024\/06\/Charts-pana-3-1-1024x1024.png 1024w, https:\/\/cms-resources.pocketful.in\/blog\/wp-content\/uploads\/2024\/06\/Charts-pana-3-1-300x300.png 300w, https:\/\/cms-resources.pocketful.in\/blog\/wp-content\/uploads\/2024\/06\/Charts-pana-3-1-150x150.png 150w, https:\/\/cms-resources.pocketful.in\/blog\/wp-content\/uploads\/2024\/06\/Charts-pana-3-1-768x768.png 768w, https:\/\/cms-resources.pocketful.in\/blog\/wp-content\/uploads\/2024\/06\/Charts-pana-3-1-1536x1536.png 1536w, https:\/\/cms-resources.pocketful.in\/blog\/wp-content\/uploads\/2024\/06\/Charts-pana-3-1-96x96.png 96w, https:\/\/cms-resources.pocketful.in\/blog\/wp-content\/uploads\/2024\/06\/Charts-pana-3-1.png 2000w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>1990 \u2013 <\/strong>The Indian Rupee depreciated in the early 1990s due to economic liberalization and a budget deficit, which led to a high inflation of 13\u201314% in India. The administration has since implemented several policies aimed at stabilizing the economy.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>2008 \u2013<\/strong> Worldwide economic uncertainty caused commodity prices to rise, leading the inflation to rise to 10% to 12%. To control the same, the Reserve Bank of India and the Indian government have since implemented a number of steps.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>2012-13 \u2013 <\/strong>Global commodities prices surged in 2012\u20132013 due to the economic downturn, which led to significant budget deficits. Around 10% inflation was experienced at the time, which put more pressure on the federal government to enact various inflation control measures.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-risks-of-high-inflation\"><span class=\"ez-toc-section\" id=\"Risks_of_High_Inflation\"><\/span>Risks of High Inflation<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Lower purchasing power results from inflation, which mostly affects middle-class or fixed-income individuals.&nbsp;<\/li>\n\n\n\n<li>Businesses find it challenging to grow as a result of rising prices.&nbsp;<\/li>\n\n\n\n<li>An increase in inflation widens income inequality.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-cases-of-low-inflations-in-india\"><span class=\"ez-toc-section\" id=\"Cases_of_Low_Inflations_in_India\"><\/span>Cases of Low Inflations in India<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-image aligncenter size-large is-resized\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"1024\" src=\"https:\/\/cms-resources.pocketful.in\/blog\/wp-content\/uploads\/2024\/06\/Progress-overview-cuate-1.png\" alt=\"Cases of Low Inflations in India\" class=\"wp-image-6722\" style=\"width:345px;height:auto\" srcset=\"https:\/\/cms-resources.pocketful.in\/blog\/wp-content\/uploads\/2024\/06\/Progress-overview-cuate-1-1024x1024.png 1024w, https:\/\/cms-resources.pocketful.in\/blog\/wp-content\/uploads\/2024\/06\/Progress-overview-cuate-1-300x300.png 300w, https:\/\/cms-resources.pocketful.in\/blog\/wp-content\/uploads\/2024\/06\/Progress-overview-cuate-1-150x150.png 150w, https:\/\/cms-resources.pocketful.in\/blog\/wp-content\/uploads\/2024\/06\/Progress-overview-cuate-1-768x768.png 768w, https:\/\/cms-resources.pocketful.in\/blog\/wp-content\/uploads\/2024\/06\/Progress-overview-cuate-1-1536x1536.png 1536w, https:\/\/cms-resources.pocketful.in\/blog\/wp-content\/uploads\/2024\/06\/Progress-overview-cuate-1-96x96.png 96w, https:\/\/cms-resources.pocketful.in\/blog\/wp-content\/uploads\/2024\/06\/Progress-overview-cuate-1.png 2000w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>2014-15 &#8211; <\/strong>Global commodity prices, including those of oil, fell throughout the 2014\u201315 year. During that time, the RBI concentrated on raising inflation, which was around 4-5% at the time.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>2000 \u2013 <\/strong>Early in 2000, the government&#8217;s fiscal conditions were preserved and inflation rates stayed between three and four percent because of steady economic conditions that led to an increase in agricultural productivity.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-cons-of-low-inflation\"><span class=\"ez-toc-section\" id=\"Cons_of_Low_Inflation\"><\/span>Cons of Low Inflation<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Deflationary pressures on the economy arise when inflation is excessively low, leading consumers to believe that prices will fall in the future.&nbsp;<\/li>\n\n\n\n<li>A low rate of inflation merely indicates that there will be fewer economic activities, which will result in reduced company profits.<\/li>\n\n\n\n<li>A lower rate of inflation will result in less tax revenue for the government, which will restrict spending.&nbsp;<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Read Also: <\/strong><a href=\"https:\/\/www.pocketful.in\/blog\/top-economic-indicators\/\">Top Economic Indicators: Overview &amp; Importance<\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-conclusion\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">To sum up, inflation is more than just a fair increase in the price of things; it also has a dynamic effect and can be detrimental to people since it reduces their purchasing power. Hence, it is your responsibility as an investor to keep up with the inflation rate and manage your investments properly.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-frequently-asked-questions-faqs\"><span class=\"ez-toc-section\" id=\"Frequently_Asked_Questions_FAQs\"><\/span>Frequently Asked Questions (FAQs)<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<div class=\"saswp-faq-block-section\"><ol style=\"list-style-type:none\"><li style=\"list-style-type: none\"><h3 class=\"\">Is Inflation good or bad for the economy?<\/h3><p class=\"saswp-faq-answer-text\">A low and contained rate of inflation is seen to stimulate economic activity and growth and a high rate of inflation reduces purchasing power and impedes economic expansion.\u00a0<\/p><li style=\"list-style-type: none\"><h3 class=\"\">Why do we need inflation to run the economy?<\/h3><p class=\"saswp-faq-answer-text\">A controlled rate of inflation promotes GDP growth, economic activity, and production in the economy.\u00a0<\/p><li style=\"list-style-type: none\"><h3 class=\"\">What causes a rise in the inflation rate?<\/h3><p class=\"saswp-faq-answer-text\">A nation&#8217;s per capita income rises in response to rising employment and wage rates. This, in turn, raises consumer disposable income, which in turn raises demand for commodities in society and ultimately drives up inflation.\u00a0<\/p><li style=\"list-style-type: none\"><h3 class=\"\">What is the meaning of inflation?<\/h3><p class=\"saswp-faq-answer-text\">Simply put, inflation is the rise in commodity prices and the decline in the purchasing power of money.\u00a0<\/p><li style=\"list-style-type: none\"><h3 class=\"\">What are the methods to control inflation?<\/h3><p class=\"saswp-faq-answer-text\">The government can implement various methods to control inflation, including fiscal and monetary methods.\u00a0<\/p><\/ul><\/div>\n\n\n<p class=\"wp-block-paragraph\"><br><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Inflation is a difficult concept but we\u2019ll try to explain it with an example: Have you ever visited a supermarket to get groceries and discovered that the number of things you could buy earlier cannot be bought with the same amount of money today? This phenomenon is called \u2018Inflation\u2019.&nbsp;&nbsp; This blog will explore inflation\u2019s causes, [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":6653,"parent":0,"menu_order":0,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[18],"tags":[],"class_list":["post-6642","personal-finance","type-personal-finance","status-publish","format-standard","has-post-thumbnail","hentry","category-personal-finance"],"acf":{"freelancer":"Akash Gupta"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v20.13 (Yoast SEO v21.2) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Inflation: Definition, Types &amp; Cases of High Inflations in India - Pocketful<\/title>\n<meta name=\"description\" content=\"Expressed as a percentage, inflation is the rise in the cost of goods and services. As commodity prices rise, money\u2019s purchasing power declines. Learn inflation\u2019s causes, effects, &amp; other aspects.\" \/>\n<meta name=\"robots\" content=\"noindex, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What is Inflation? Meaning, Types, &amp; Risks\" \/>\n<meta property=\"og:description\" content=\"Expressed as a percentage, inflation is the rise in the cost of goods and services. As commodity prices rise, money\u2019s purchasing power declines. 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