Factors responsible for the high rates of inflation in India

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Factors responsible for the high rates of inflation in India

cost of living has increased dramatically due to the high rates of inflation in India; achieved an unprecedented rise in the price life difficult for Indian joint in a modern city with limited sources of income.

state that believes in the "guest is God" and had a long history of welcoming guests, avoids Now guests, because it's not the most comfortable in bearing their own daily costs expenses and find it impossible when responsibility additional guests are added. It seems that today's inflation also affect the way the Indian traditions and culture are present in their lives.

how everything happened, what are the factors responsible for this new inflationary trend, is it a sign of an advanced nation or a nation to collapse. Economists blame fluctuations in supply and demand, but this is not the only factor, there is no other factors responsible for this trend. To learn more about other causes of inflationary trends in India.

There are many perspectives and views and ideas about the factors responsible for the high rates of inflation in India, which can be divided into different groups based on their profession and background, such as prevailing: -

  1. economists
  2. politicians
  3. businessman
  4. server Government
  5. Astrologers
  6. daily wage earners
  7. workers
  8. traders in the commodities market
  9. Rob modern home
  10. villagers
  11. farmers

each of these groups has many reasons for believe the factors that they believe is responsible for the high ongoing inflation in India, some of these professionals actually take care that the reason they mention that actually help their professional perspective or perhaps public image. So, here we have to try to dig all of the views of contemporary and some other potential factors that operate in the background.

common factors that affect the rate of inflation

(1). Disposable income: earning more than what is actually required to meet basic needs, and said that the inflationary trends in the country or area of ​​influence. India today developing very quickly, which means the Indian people now have more jobs and good salaries and more income to get rid of the market.

(2). Government policies: policies by government also affect the approved rates of inflation. In the case of India, it works on two levels, the central government and the state government and as such the actual impact of inflation will be slightly different in different parts of the country.

3.:[1945019globalfactorsintoday'smajoreconomiesintheworldnotonlytheimpactofgovernmentpolicies:othercountriesbuttheyalsohaveanimpactthere call is free . inflation , and India is not immune from these external factors vBulletin.

(4). Imports and exports: import in a timely manner goods and products that are in limited supply certainly help to resist rising inflation. On the other hand, if we export these goods and products that are likely to be demanded in the future, on the other hand, inflation could rise.

(5). Banking policies: in banks in India are ruled [ربي], which decides the money available in the market size. Banks increase or decrease the interest rates on the directives of RBI. It is said that low inflation rates with more and more people use their money to shop instead of keeping it in a bank because they do not find it attractive to keep this money in a bank, the people of the hands of others who do not have a lot of money, take loans from the bank, in every The new conditions have increased demand inflation rises further.

(6). Natural factors: the nature still holds the predominance of in India, a large part of agriculture in India is still rains and floods are also common in some areas, recently in 2012, less than the average rainfall forecast by the India Meteorological departments raised as well as the common man, as these expectations turned out to be the wrong government.

(7). Tradition and culture: Indian markets are influenced to a great Indian traditions and culture extent, is likely to increase demand and therefore inflation festival season. Considered a long tradition in India, culture, habit of celebrating every occasion in a social occasion, and the wedding season and so also affect inflation in India.

(8). Lifestyle changes: lifestyle also affect the rate of inflation, in the traditional Indian life was based on the philosophy of simple living, high thinking pattern. Today, most Indians do not agree either with it or is not bound by it. Most Indians are attracted today as the modern lifestyle, consumption rate rose dramatically. Modern lifestyle is actually geared towards self-lifestyle where people do not consider how it will affect the community and the nation, they are selfish, if they get the money, which will use it for personal care.

and the above list is just a short list of possible causes, there are many other reasons that affect Indian markets and that can be controlled by Indian citizens, to apply the brakes on inflation speed, as is the case in inflation, India does not create financial difficulties but a large number of Indians living below the poverty line, it is a matter of life or death.

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