Daily Point 2044 - Price Spiraling Effect of Inflation

 

The Banking Tutor

Daily Point 2044

Price Spiraling Effect of Inflation 

Inflation has a tendency to pass on from one sector to the other depending upon the prevailing conditions. In developing countries like India, inflation often begins in primary commodities like food and fuel. Price rise may be appearing in one sector or in the case of a few commodities. But it always has the tendency to spread all over the economy-into different goods and services. Price rise in basic goods spreading to other commodities is called price spiraling effect.

Sekhar Pariti

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