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๐ Basic Economics
Inflation & Deflation
Inflation is the general rise in prices; RBI targets 4% inflation in India using monetary policy
Global ๐ 1776 Basic Economics
Key Facts
- 1
CPI (Consumer Price Index) measures retail inflation; WPI (Wholesale Price Index) measures wholesale prices
- 2
India: RBI's inflation target is 4% (ยฑ2%) under Flexible Inflation Targeting Framework since 2016
- 3
Causes: demand-pull (too much money chasing goods), cost-push (rising input costs), built-in (wage-price spiral)
๐ Did you know? Zimbabwe's hyperinflation peaked at 89.7 sextillion percent per month in 2008 โ people needed wheelbarrows of cash to buy bread
Quick Reference
Category
Basic Economics
Country
๐ Global
Year / Era
1776
About
Inflation is the general rise in prices