Inflation Dominated in 2022: Gas cylinder crossed 1000 rupees, one kilo flour became 26 to 32 rupees
The year 2022 is about to end, this year inflation has troubled people a lot. For the first time in 2022, the domestic gas cylinder crossed Rs 1,000. On the other hand, flour has increased from Rs 26 to Rs 32 per kg this year. Similarly, the prices of daily use items like oil, milk and rice have also increased this year.
The rise in inflation simply means that the value of your earned money will decrease. For example, if the inflation rate is 7%, then Rs 100 you earn will be worth Rs 93. There are many factors that can increase prices or inflation in an economy. Typically, inflation is caused by an increase in production costs, an increase in demand for products and services, or a decrease in supply. There are 6 major reasons for rising inflation:
Exploring the causes of inflation in India, the rupee has become weak in comparison to the dollar and has reached beyond the level of 80. India's imports are becoming more expensive due to dollar being expensive and due to this the prices of things in the domestic market are also increasing. At the same time, after Kovid, the supply chain has not yet come completely back on track, which has increased inflation. Apart from this, the prices of crude oil and food items have increased due to the Russia-Ukraine war.