Inflation What is it???

Inflation is a rise in the general level of prices goods and services over time. "Inflation" is also sometimes used to refer to a rise in the prices of some specific set of goods or services

Inflation, is an economic concept. What the cause of inflation is, is not important to us from the point of view of this article. What is important to us is the effect of inflation! The effect of inflation is the prices of everything going up over the years.

A movie ticket was for a few paise in my dad’s time. Now it is worth Rs.50. My dads first salary for the month was Rs.400 and over he years it has now become Rs.75,000. This is what inflation is, the price of everything goes up. Because the price goes up, the salaries go up.

If you really thing about it, inflation makes the worth of money reduce. What you could buy in my dad’s time for Rs.10, now a days you will not be able to buy for Rs.400 also. The worth of money has reduced! If this is still not clear consider this, when my father was a kid, he used to get 50paise pocket money. He used to use this money to go and watch a movie (At that time you could watch a movie for 50paise!)

The moral of the story is that, the worth of the 50paise reduced dramatically. 50paise could buy a whole lot when my dad was a kid. Now, 50paise can buy nothing. This is inflation.

The important thing To Do is not keep your money stagnant. If you just save money by putting it your safe it will loose value over time. If you have Rs.1000 in your safe today and you keep it there for 10years or so, it will be worth a lot less after 10 years. If you can buy something for Rs.1000 today, you will probably require Rs.1500 to buy it 10 years from now. So do not keep money locked up in your safe. So always invest money.

If you can’t think where to invest your money, then put it in a bank. Let it grow by gaining interest. But whatever you do, do not just lock your money up in your safe and keep it stagnant. If you do this, you will be loosing money without even knowing it. The more money you keep stagnant the more money you will be loosing.

Well this much info only i can provide for u. With increasing oil prices in global market inflation rates in INDIA is upto 12% now. The main reason as experts say that there is a lack of IDEA abt what inflation is among common people. They say people should step forward and do their part like investing money in financial institutions and reduce the usage of Oil. So next time when u want to go the market nearby don't take ur car. Just walk around. Also invest money. Inflation has no Sudden cure but it needs a prelonged approach. As India is facing the big inflation rates after 1990 our money's economic value is reducing just lik the value of dollar. So thats it this is the atmost info i kno abt inflation, u can also add ur ideas abt inflation and how to tackle it in comments to this post.