I hope many know what is meant by Inflation. There are always talks going on about Inflation in newspaper these days. It is right now 7% and this is the highest in the past three years.
This is the definition of inflation from wikipedia.
Whatever I understood :
The value of money decreases, i.e. Say today I can buy 10Kgs of rice with Rs. 100 and if inflation increases tomorrow I can only buy 9Kgs of rice with Rs. 100. This is very high level. With the same amount of money we will be able to get less than the previous situation. The prices of commodities increases and that is a concern, we can’t do much about it and government should take care of it.
We don’t really care about Inflation, do we? We wont bother about price raise as it is not pinching our pocket as we are all paid well but for a poor common man it is very bad thing. Inflation should be controlled.