Is Inflation always harmful?

Jan 16 • General • 2747 Views • 6 Comments on Is Inflation always harmful?

Inflation is a measure of economy whether shrinking or growing but mostly inflation results in shrinking of the economy.

It results in increase in prices of the day to day commodities.

It also increases the interest rates, loans and other means by which the people are borrowing or lending money. Thus, hurting regular people more.

It creates confusion, uncertainty leading to less investment and low international competitiveness.

It leads to decline in income called as stagnant wage growth.

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6 Responses to Is Inflation always harmful?

  1. Gourav Jain says:

    Inflation has some good side as well as it brings along certain evils.
    It becomes difficult for the common man to lead his life, but in turn it increases the standard of living because some way or the other due to inflation there is an increase in the flow of money in the market which in turn comes back to your pocket.

  2. Ritika says:

    Maintaining a healthy inflaby economiststion has always been emphasised by economists.

  3. sakshi chaudhary says:

    its a mandatory thing…by seeing the common man its some time harmful and for the higher class people their is no effect of inflation on them.Its a common thing for them….

  4. Saurabh Singh says:

    It is Harmful if we see it from side of common man..because every one are not able to purchase commodities at a very high rates..and in Inflation our economy fails to drive in right direction..

  5. Ankita Prajapati says:

    Inflation is not harmful as it acts as a symptom for growing economy…

  6. Chitranshi Dhaneshwar says:

    If there is rise,there has to be a downfall.But that downfall is always harmful is not mandatory.

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