Retail inflation has come down to 4.83% in April 2024. This is the lowest level of inflation in 11 months. In June 2023 it was 4.81%. However, food items have become expensive in the month of April. The National Statistical Office has released these figures on Monday 13 May.
Whereas a month ago i.e. in March 2024, the inflation rate was 4.85%. Food inflation rate has increased from 8.52% to 8.78%. Rural inflation rate has come down from 5.45% to 5.43% and urban inflation rate has come down from 4.14% to 4.11%.
How does inflation affect?
Inflation is directly related to purchasing power. For example, if the inflation rate is 6%, then Rs 100 earned will be worth only Rs 94. Therefore, investment should be made only keeping inflation in mind. Otherwise the value of your money will reduce.
How does inflation increase and decrease?
The rise and fall of inflation depends on the demand and supply of the product. If people have more money they will buy more things. Buying more things will increase the demand for things and if the supply is not as per the demand, the price of these things will increase.
In this way the market becomes vulnerable to inflation. Simply put, excessive flow of money or shortage of goods in the market causes inflation. Whereas if demand is less and supply is more then inflation will be less.
