{"id":35065,"date":"2024-03-20T10:17:51","date_gmt":"2024-03-20T10:17:51","guid":{"rendered":"https:\/\/edukemy.com\/blog\/?p=35065"},"modified":"2024-03-20T10:17:52","modified_gmt":"2024-03-20T10:17:52","slug":"inflation-concepts-facts-and-policy-upsc-economy-notes","status":"publish","type":"post","link":"https:\/\/edukemy.com\/blog\/inflation-concepts-facts-and-policy-upsc-economy-notes\/","title":{"rendered":"Inflation &#8211; Concepts, Facts, and Policy &#8211; UPSC Economy Notes"},"content":{"rendered":"\n<figure class=\"wp-block-image size-full\"><a href=\"https:\/\/edukemy.com\/upsc\/upsc-economy?utm_source=Blog&amp;utm_medium=Banner&amp;utm_campaign=Blog+Economy\" target=\"_blank\" rel=\"noreferrer noopener\"><img fetchpriority=\"high\" decoding=\"async\" width=\"1280\" height=\"300\" src=\"https:\/\/edukemy.com\/blog\/wp-content\/uploads\/2024\/06\/17.png\" alt=\"\" class=\"wp-image-42386\" srcset=\"https:\/\/edukemy.com\/blog\/wp-content\/uploads\/2024\/06\/17.png 1280w, https:\/\/edukemy.com\/blog\/wp-content\/uploads\/2024\/06\/17-1170x274.png 1170w, https:\/\/edukemy.com\/blog\/wp-content\/uploads\/2024\/06\/17-585x137.png 585w\" sizes=\"(max-width: 1280px) 100vw, 1280px\" \/><\/a><\/figure>\n\n\n\n<p><strong>Introduction:<\/strong> Inflation refers to a persistent increase in the average price of goods and services. While moderate price rises can indicate economic growth, steep inflation can have detrimental effects on the entire economy. Excessive inflation adversely impacts economic elements such as growth, budgetary balance, welfare, purchasing power, and more. It disproportionately affects the poor as a larger portion of their income is required for consumption, diminishes savings, raises interest rates, hampers investment, and leads to currency depreciation, making imports more expensive and contributing to further inflation. Achieving moderate, long-term inflation is crucial for maintaining macroeconomic stability. Government policies are designed to foster growth with price stability.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_73 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<label for=\"ez-toc-cssicon-toggle-item-69d2f453dde6d\" class=\"ez-toc-cssicon-toggle-label\"><p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-cssicon\"><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><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69d2f453dde6d\"  \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/edukemy.com\/blog\/inflation-concepts-facts-and-policy-upsc-economy-notes\/#Key_Points\" title=\"Key Points:\">Key Points:<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/edukemy.com\/blog\/inflation-concepts-facts-and-policy-upsc-economy-notes\/#Inflation_and_its_Types\" title=\"Inflation and its Types:\">Inflation and its Types:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/edukemy.com\/blog\/inflation-concepts-facts-and-policy-upsc-economy-notes\/#Other_Inflation-Related_Concepts\" title=\"Other Inflation-Related Concepts:\">Other Inflation-Related Concepts:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/edukemy.com\/blog\/inflation-concepts-facts-and-policy-upsc-economy-notes\/#Core_or_Underlying_Inflation\" title=\"Core or Underlying Inflation:\">Core or Underlying Inflation:<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/edukemy.com\/blog\/inflation-concepts-facts-and-policy-upsc-economy-notes\/#Rationale_for_Exclusion\" title=\"Rationale for Exclusion:\">Rationale for Exclusion:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/edukemy.com\/blog\/inflation-concepts-facts-and-policy-upsc-economy-notes\/#Comparison_with_Headline_Inflation\" title=\"Comparison with Headline Inflation:\">Comparison with Headline Inflation:<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/edukemy.com\/blog\/inflation-concepts-facts-and-policy-upsc-economy-notes\/#FAQs\" title=\"FAQs\">FAQs<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/edukemy.com\/blog\/inflation-concepts-facts-and-policy-upsc-economy-notes\/#1_What_is_inflation\" title=\"1. What is inflation?\">1. What is inflation?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/edukemy.com\/blog\/inflation-concepts-facts-and-policy-upsc-economy-notes\/#2_What_causes_inflation\" title=\"2. What causes inflation?\">2. What causes inflation?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/edukemy.com\/blog\/inflation-concepts-facts-and-policy-upsc-economy-notes\/#3_How_does_inflation_affect_the_economy\" title=\"3. How does inflation affect the economy?\">3. How does inflation affect the economy?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/edukemy.com\/blog\/inflation-concepts-facts-and-policy-upsc-economy-notes\/#4_How_is_inflation_measured\" title=\"4. How is inflation measured?\">4. How is inflation measured?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/edukemy.com\/blog\/inflation-concepts-facts-and-policy-upsc-economy-notes\/#5_How_do_policymakers_address_inflation\" title=\"5. How do policymakers address inflation?\">5. How do policymakers address inflation?<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/edukemy.com\/blog\/inflation-concepts-facts-and-policy-upsc-economy-notes\/#In_case_you_still_have_your_doubts_contact_us_on_9811333901\" title=\"In case you still have your doubts, contact us on 9811333901.&nbsp;\">In case you still have your doubts, contact us on 9811333901.&nbsp;<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/edukemy.com\/blog\/inflation-concepts-facts-and-policy-upsc-economy-notes\/#Visit_our_YouTube_Channel_%E2%80%93_here\" title=\"Visit our YouTube Channel &#8211;&nbsp;here\">Visit our YouTube Channel &#8211;&nbsp;here<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Key_Points\"><\/span><strong><em>Key Points:<\/em><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ol class=\"wp-block-list\"><li><strong>Moderate vs. Steep Inflation:<\/strong> Moderate inflation can be indicative of economic growth, while steep inflation poses multiple challenges for the economy.<\/li><li><strong>Impact of Steep Inflation:<\/strong><ul><li><strong>Economic Hurt:<\/strong> Steep inflation adversely affects various economic factors.<\/li><li><strong>Purchasing Power Reduction:<\/strong> It reduces the purchasing power of money.<\/li><li><strong>Disproportionate Impact on the Poor:<\/strong> The poor are more severely affected as a higher percentage of their income is required for consumption.<\/li><li><strong>Savings Reduction:<\/strong> Inflation diminishes savings.<\/li><li><strong>Interest Rate Impact:<\/strong> It leads to an increase in interest rates.<\/li><li><strong>Dampened Investment:<\/strong> Inflation dampens investment.<\/li><li><strong>Currency Depreciation:<\/strong> Steep inflation contributes to the depreciation of the currency, making imports costlier and feeding back into inflation.<\/li><\/ul><\/li><li><strong>Macroeconomic Stability:<\/strong> The overall stability of the economy is closely tied to inflation levels, emphasizing the need for sustainable, moderate inflation.<\/li><li><strong>Government Policies:<\/strong> Government policies strive for growth with price stability, aiming for moderate, long-term inflation.<\/li><\/ol>\n\n\n\n<p>Understanding inflation and formulating effective policies is crucial for maintaining a balance between economic growth and stability.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Inflation_and_its_Types\"><\/span><strong>Inflation and its Types:<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Inflation is categorized based on the rate of price growth and can manifest in various forms:<\/p>\n\n\n\n<ol class=\"wp-block-list\"><li><strong>Creeping Inflation:<\/strong><ul><li><strong>Rate:<\/strong> Up to 4% annually.<\/li><li><strong>Significance:<\/strong> Considered positive for the system, indicating growth and stability.<\/li><li><strong>Economic Impact:<\/strong> Encourages reasonable profits, fostering investment by producers and traders.<\/li><li><strong>Deterrent to Deflation:<\/strong> Acts as a deterrent to deflationary trends.<\/li><\/ul><\/li><li><strong>Trotting Inflation:<\/strong><ul><li><strong>Description:<\/strong> A progression from creeping inflation with an increasing rate of price growth.<\/li><li><strong>Potential Outcome:<\/strong> If uncontrolled, may escalate into galloping inflation.<\/li><\/ul><\/li><li><strong>Galloping Inflation:<\/strong><ul><li><strong>Rate:<\/strong> Around 8-10% annually.<\/li><li><strong>Concerns:<\/strong> Represents a higher and more concerning level of inflation.<\/li><li><strong>Outcome:<\/strong> If not addressed, may further escalate into runaway inflation.<\/li><\/ul><\/li><li><strong>Runaway Inflation:<\/strong><ul><li><strong>Description:<\/strong> Represents an inflationary cycle without any tendency toward equilibrium.<\/li><li><strong>Cause:<\/strong> Often caused by reckless fiscal policies leading to excess money through deficit financing.<\/li><li><strong>Consequences:<\/strong> Can result from war, social upheavals, and diversion of resources for military purposes.<\/li><li><strong>Outcome:<\/strong> May lead to hyperinflation.<\/li><\/ul><\/li><li><strong>Hyperinflation:<\/strong><ul><li><strong>Severity:<\/strong> Prices are out of control.<\/li><li><strong>Rate:<\/strong> Monthly inflation rate of 20% or more.<\/li><li><strong>Causes:<\/strong> Result of reckless fiscal policies, war, or social upheavals destabilizing production.<\/li><li><strong>Consequences:<\/strong> Could lead to monetary collapse, loss of currency value, and potential shifts to barter or foreign currency dominance.<\/li><\/ul><\/li><li><strong>Note:<\/strong> Tolerance levels for inflation rates vary from country to country, with developed nations generally having lower tolerance levels compared to developing countries.<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Other_Inflation-Related_Concepts\"><\/span><strong>Other Inflation-Related Concepts:<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ol class=\"wp-block-list\"><li><strong>Deflation:<\/strong><ul><li><strong>Definition:<\/strong> Prices grow at a rate less than zero.<\/li><li><strong>Effect:<\/strong> Increases the value of money, allowing for the purchase of more goods and services with the same amount of currency.<\/li><\/ul><\/li><li><strong>Disinflation:<\/strong><ul><li><strong>Definition:<\/strong> Reduction in the rate of inflation.<\/li><li><strong>Scenario:<\/strong> Prices are still increasing, but the rate of growth is slowing.<\/li><li><strong>Causes:<\/strong> Reduction in money supply, economic slowdown, increased supplies leading to cheaper prices, etc.<\/li><\/ul><\/li><li><strong>Stagflation:<\/strong><ul><li><strong>Description:<\/strong> Combination of inflation and rising unemployment during a recession.<\/li><li><strong>Scenario:<\/strong> High inflation, slowed economic growth or recession, and increased unemployment.<\/li><li><strong>Challenge:<\/strong> Standard policy interventions may not be effective, posing challenges for economic management.<\/li><\/ul><\/li><li><strong>Reflation:<\/strong><ul><li><strong>Definition:<\/strong> Return of inflation after a period of deflation and recession, indicating economic growth.<\/li><li><strong>Example:<\/strong> Post the great recession (2007-09), when growth was revived in the US and EU.<\/li><\/ul><\/li><li><strong>Open Inflation:<\/strong><ul><li><strong>Context:<\/strong> Governments subsidize goods and services to maintain affordability.<\/li><li><strong>Result:<\/strong> Inflation that occurs when the government does not suppress it with subsidies and monetary policy.<\/li><\/ul><\/li><li><strong>Suppressed Inflation:<\/strong><ul><li><strong>Definition:<\/strong> Government takes fiscal and monetary actions to manage inflation at a moderate level.<\/li><li><strong>Concern:<\/strong> Inflation is managed but not entirely resolved, and may re-emerge if fiscal policies change.<\/li><\/ul><\/li><li><strong>Headline Inflation:<\/strong><ul><li><strong>Definition:<\/strong> Measure of total inflation, unadjusted.<\/li><li><strong>Experience:<\/strong> Represents overall inflation as reported, reflecting what consumers experience.<\/li><li><strong>Contrast:<\/strong> Contrasted with core inflation for a better understanding.<\/li><\/ul><\/li><\/ol>\n\n\n\n<p>These concepts help provide a comprehensive view of the various nuances and scenarios related to inflation and its management.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Core_or_Underlying_Inflation\"><\/span><strong>Core or Underlying Inflation:<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong>Definition:<\/strong> Core or underlying inflation measures the long-run trend in the general price level, excluding temporary effects.<\/p>\n\n\n\n<p><strong>Calculation:<\/strong> To calculate core inflation, certain items are excluded from the computation. These typically include changes in the price of fuel and food, especially the processed food part of manufacturing.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Rationale_for_Exclusion\"><\/span><strong>Rationale for Exclusion:<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Volatility:<\/strong> Excluded items are volatile, subject to short-term fluctuations.<\/li><li><strong>Seasonality:<\/strong> Excluded items, particularly food, often exhibit seasonal variations.<\/li><\/ul>\n\n\n\n<p><strong>Objective:<\/strong> Core inflation aims to eliminate transitory effects, providing a more stable and reliable measure of the underlying inflationary trend.<\/p>\n\n\n\n<p><strong>Purpose:<\/strong> The main argument for using core inflation is that central banks should respond effectively to demand-side factors, such as the money available in the market and demand for credit, rather than reacting to supply shocks like those related to energy and food prices.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Comparison_with_Headline_Inflation\"><\/span><strong>Comparison with Headline Inflation:<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Inclusion:<\/strong> Headline inflation includes the official rate of price increase without excluding any item from the basket.<\/li><li><strong>Scope:<\/strong> Both headline and core inflation are calculated at both wholesale and consumer levels.<\/li><li><strong>Preference in Targeting:<\/strong> When targeting inflation, central banks may prefer to consider CPI (Combined, i.e., rural and urban) headline inflation, as has been the case with the RBI in India since 2015.<\/li><\/ul>\n\n\n\n<p>By distinguishing core inflation from headline inflation, policymakers gain insights into the persistent inflationary trends, allowing for more effective and targeted monetary policy responses.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"FAQs\"><\/span>FAQs<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"1_What_is_inflation\"><\/span><strong>1. What is inflation?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\"><li>Inflation refers to the rate at which the general level of prices for goods and services rises, eroding purchasing power. It&#8217;s commonly measured as the percentage change in the Consumer Price Index (CPI) or the Producer Price Index (PPI) over a specific period, typically a month or a year.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"2_What_causes_inflation\"><\/span><strong>2. What causes inflation?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\"><li>Inflation can be caused by various factors, including:<ul><li>Demand-pull inflation: When aggregate demand exceeds aggregate supply, typically fueled by increased consumer spending, investment, or government expenditure.<\/li><li>Cost-push inflation: Arises when production costs, such as wages or raw materials, rise, leading producers to pass these costs onto consumers through higher prices.<\/li><li>Built-in inflation: Occurs when workers demand higher wages to keep up with rising prices, leading to a cycle of wage-price increases.<\/li><li>Monetary factors: Expansionary monetary policies, such as increasing the money supply or lowering interest rates, can also contribute to inflation by boosting demand.<\/li><\/ul><\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"3_How_does_inflation_affect_the_economy\"><\/span><strong>3. How does inflation affect the economy?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\"><li>Inflation impacts the economy in various ways:<ul><li>Reduced purchasing power: As prices rise, the value of money decreases, leading to a decline in consumers&#8217; purchasing power.<\/li><li>Uncertainty: High or unpredictable inflation can disrupt economic planning and investment decisions, leading to uncertainty and reduced economic growth.<\/li><li>Redistribution of income and wealth: Inflation can redistribute income and wealth, benefiting debtors (who repay loans with less valuable currency) but harming savers and fixed-income earners.<\/li><li>Interest rates: Central banks often respond to inflation by raising interest rates to curb spending and stabilize prices, which can affect borrowing costs and investment.<\/li><\/ul><\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"4_How_is_inflation_measured\"><\/span><strong>4. How is inflation measured?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\"><li>Inflation is typically measured using various price indices, including:<ul><li>Consumer Price Index (CPI): Measures the average change in prices paid by urban consumers for a basket of goods and services, representing typical household spending patterns.<\/li><li>Producer Price Index (PPI): Tracks the average change in prices received by domestic producers for their output, providing insights into inflationary pressures at the wholesale level.<\/li><li>GDP deflator: Calculates the ratio of nominal GDP to real GDP, reflecting the overall price level of goods and services included in GDP.<\/li><\/ul><\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"5_How_do_policymakers_address_inflation\"><\/span><strong>5. How do policymakers address inflation?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\"><li>Policymakers employ various tools to manage inflation, including:<ul><li>Monetary policy: Central banks adjust interest rates, regulate the money supply, and conduct open market operations to influence borrowing costs and aggregate demand.<\/li><li>Fiscal policy: Governments may implement measures such as taxation, public spending, and budget deficits to stimulate or restrain economic activity, indirectly affecting inflation.<\/li><li>Supply-side policies: Efforts to enhance productivity, reduce production costs, and promote competition can help mitigate cost-push inflation and boost long-term economic growth.<\/li><\/ul><\/li><\/ul>\n\n\n\n<figure class=\"wp-block-image size-full is-resized\"><a href=\"https:\/\/edukemy.com\/upsc\/upsc-essay?utm_source=Blog&amp;utm_medium=Banner&amp;utm_campaign=Essay\" target=\"_blank\" rel=\"noreferrer noopener\"><img decoding=\"async\" data-src=\"https:\/\/edukemy.com\/blog\/wp-content\/uploads\/2024\/06\/UPSC-Essay-Course-1280\u00d7300-1-3.svg\" alt=\"\" class=\"wp-image-42688 lazyload\" width=\"781\" height=\"182\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" style=\"--smush-placeholder-width: 781px; --smush-placeholder-aspect-ratio: 781\/182;\" \/><\/a><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"block-a89a3d67-2417-45cd-a2fb-0111b244b0c1\"><span class=\"ez-toc-section\" id=\"In_case_you_still_have_your_doubts_contact_us_on_9811333901\"><\/span><strong>In case you still have your doubts, contact us on 9811333901.<\/strong>&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p id=\"block-69a62278-baf6-4ddd-a549-0ddd2778f323\">For UPSC Prelims Resources,&nbsp;<a href=\"https:\/\/edukemy.com\/upsc-cse-prelims-resource-centre\" target=\"_blank\" rel=\"noreferrer noopener\">Click here<\/a><\/p>\n\n\n\n<p id=\"block-c56c7fb3-ec87-4e90-b054-6f51ec4c67f5\">For Daily Updates and Study Material:<\/p>\n\n\n\n<p id=\"block-b119f379-961e-41a3-8289-c115ec5ee6e2\">Join our Telegram Channel &#8211;&nbsp;<a href=\"https:\/\/t.me\/WithEdukemy4IAS\" target=\"_blank\" rel=\"noreferrer noopener\">Edukemy for IAS<\/a><\/p>\n\n\n\n<ul class=\"wp-block-list\" id=\"block-b3874375-be5a-4d16-856f-48851f19bc36\"><li>1. Learn through Videos &#8211;&nbsp;<a href=\"https:\/\/bit.ly\/3vOD8sU\" target=\"_blank\" rel=\"noreferrer noopener\">here<\/a><\/li><li>2. Be Exam Ready by Practicing Daily MCQs &#8211;&nbsp;<a href=\"https:\/\/bit.ly\/3Q9z2nF\" target=\"_blank\" rel=\"noreferrer noopener\">here<\/a><\/li><li>3. Daily Newsletter &#8211; Get all your Current Affairs Covered &#8211;&nbsp;<a href=\"https:\/\/bit.ly\/3bE2y5J\" target=\"_blank\" rel=\"noreferrer noopener\">here<\/a><\/li><li>4. Mains Answer Writing Practice &#8211;&nbsp;<a href=\"https:\/\/bit.ly\/3mZuVxl\" target=\"_blank\" rel=\"noreferrer noopener\">here<\/a><\/li><\/ul>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"block-fecb2f6f-20a7-4f52-8c9d-10509a066c20\"><span class=\"ez-toc-section\" id=\"Visit_our_YouTube_Channel_%E2%80%93_here\"><\/span>Visit our YouTube Channel &#8211;&nbsp;<a href=\"https:\/\/www.youtube.com\/@EduKemyforIAS\" target=\"_blank\" rel=\"noreferrer noopener\">here<\/a><span class=\"ez-toc-section-end\"><\/span><\/h4>\n","protected":false},"excerpt":{"rendered":"<p>Inflation refers to a persistent increase in the average price of goods and services. While moderate price rises can indicate economic growth<\/p>\n","protected":false},"author":17,"featured_media":35066,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_eb_attr":"","om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[209],"tags":[235,1230,232,213,140],"class_list":["post-35065","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy-notes","tag-economy-notes","tag-inflation","tag-upsc","tag-upsc-notes","tag-upsc_preparation_strategy"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/posts\/35065","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/users\/17"}],"replies":[{"embeddable":true,"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/comments?post=35065"}],"version-history":[{"count":1,"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/posts\/35065\/revisions"}],"predecessor-version":[{"id":35067,"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/posts\/35065\/revisions\/35067"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/media\/35066"}],"wp:attachment":[{"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/media?parent=35065"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/categories?post=35065"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/tags?post=35065"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}