[Om Education Society]

services:inflation

Inflation in relation to the Savings & Investments relate to the fact that the cost of living keeps on rising with time. There is reduction of purchasing power of the money. That means the same amount of money can purchase less quantity of same goods as the time passes.

Inflation is common in all developing countries. The cause of inflation is complex & very deep. The scarcity, increasing population, demand & supply, globalization, opportunities, Government policies, and so on, all contribute to the inflation.