PRESENTED BY: BARSHA DEY(10025) SOUMYAJITA DEY(10021) SOVON BHATTACHARJEE(10023) SARBOJIT MUKHERJEE(10018)

ACKNOWLEDGEMENT The satisfaction that accompanies that the successful completion of any task would be incomplete without the mention of people whose ceaseless cooperation made it possible, whose constant guidance and encouragement crowned all efforts with success. We are thankful to all of our teachers who helped, assisted and guided for successful completion of this Presentation. We specially thank to  Mr Hirak Gupta(HOD Humanities)  Ms Debjani Chatterjee  Mr Debashis Banerjee  Ms Sulogna Nayak

WHAT IS INFLATION? Inflation is a rise in the general level of prices of goods and services over time. "Inflation" is used to refer to a rise in the prices of some specific set of goods or services, as in "commodities inflation".level of pricescommodities inflation

1.Fuel price hike. 2.Food price hike. 3.Demand-pull inflation. 4.The cost-push theory. 5. Money supply CAUSES OF INFLATION

Fuel Hike has taken its toll on the common man. Inflation has forced the government to hike the fuel prices by approximately Rs 6/Ltr and LPG gas by Rs 50/Cyldr. This years fuel hike is the highest fuel hike recorded in the Indian history. LPG which is the essential necessity of every house is on a low supply and not meeting its demands even after the hike. A Common man just cannot survive with so many odds going against him. FUEL HIKE

In times of rising inflation, this means that increased cost of living for the population. Commodity prices, for example, have increased by around 20% in With most of India’s vast population living close to – or below – the poverty line, inflation acts as a ‘Poor Man’s Tax’. This effect is amplified when food prices rise, since food represents more than half of the expenditure of this group. FOOD PRICE HIKE

Economic Effects : The impact of Inflation on the economic system may be classified into 3 kinds 1) Effects on production (that is changes in the routine of economic activity) 2) Effects on income distribution (i.e, redistribution of income and wealth) 3) Effects on the consumption and welfare. EFFECTS OF INFLATION

INFLATION AFFECTING COMMON PEAPLE

 The Government has directed the Reserve Bank of India (RBI) to take monetary measures and to put down interest rates to control Inflation.  The Central Government of India has directed the Chief Ministers of all the states in India to take preventive measures to control Inflation like cutting down of sales tax, custom and excise duties.  Some of the state Governments have taken up the initiative to provide lower priced ration goods for the Below Poverty Line (BPL) masses because they are the ones who are the mostly effected. STEPS TAKEN BY THE GOVERNMENT

EMPHASIS ON BIOFUEL With petroleum product price rising steadily; diesel alone has become 25 per cent costlier over the last year. Apart from the search for alternatives, it is the need to achieve energy independence that is directing so much focus on biofuels and the crops that will help yield these oils.. The problem of the huge oil import bill and the price uncertainty can be mitigated by cultivating biofuel crops on the over 60 million hectares of wasteland available in the country.

 Inflation is unjust because it affects different classes of people in the society in different ways and in different degrees  If inflation were to affect everyone in the society in exactly the same manner and to the same the degree, it would not alter the economic and social relationships in the community.  But inflation takes away wealth from some people and transfers it to others on a random basis.  The rich become richer and the poor become poorer during inflation.  Inflation is also affecting the common man’s day to day savings. CONCLUSION