Inflation is becoming a major problem for the world. Due to this, people's purchasing power is being eroded. Economic systems of countries are suffering severe damage. Central banks are working hard to curb inflation. 

It is the educated people who talk a lot about fake inflation or price rise, after the introduction of Goods and Services Tax (GST) the prices of milk, curd and drinking water bottles have gone up and now the illiterate people are playing with the word inflation. Inflation can seriously affect the domestic and financial conditions of families. Therefore, the government and the Reserve Bank give the highest priority to fix it. The Federal Reserve, the US central bank, aims to limit inflation to two percent in their country. Changes are being made in interest rates and money availability accordingly. In order to ensure that the living conditions of the citizens are not damaged, central banks around the world are trying to control inflation based on the consumer price index. 

Huge increase 

When demand for goods increases and supply decreases, prices rise. Even if the availability of money in the market is high, the purchase price will fall and the prices will rise. If prices continue to fall, it is called hyperinflation or deflation. Whenever the currency exchange rate depreciates, inflation increases. Inflation increased between 2014-22 due to depreciation of the rupee against the dollar. In contrast to that, inflation is increasing in the US even though the value of the dollar is falling. India's soaring inflation is making the future uncertain. won't go away Companies find it difficult to set prices for the goods they produce when they do not know what the prices will be. They cannot decide whether to increase or decrease production. Everyone worries that inflation will lead to more inflation. Increase in population, increase in government deficit, wide availability of credit, growth in exports, increase in purchasing power of people. All these are causes of inflation. Natural products occur Then, when there is a shortage of raw materials and other means of production, when black market trade and illegal stockpiles increase, when people buy and hoard goods in bulk like during Covid, the prices of goods rise. Inflation in India was three per cent in 1857-58 and seven per cent in 1960-415. Due to wars with China and Pakistan in 1962 and 1965, prices increased. Crop failure in 1965-86 also increased inflation. In addition to that, the Organization of Petroleum Exporting Countries (OPEC) also increased oil prices.