Hi, Friend,
Do you want to know how inflation affects the price of the commodities? Let me assist you regarding this.
What is Inflation?Inflation is defined as an increase in the average price of goods and services.
How inflation affects the price of the commodities?When inflation rises, the price of the commodities and the general cost of living rises as well. Inflation has an impact on your ability to buy goods and services, making them more expensive over time. A litre of milk, for example, cost Rs. 15 ten years ago. Today, the same milk costs Rs 35.
Price increases in key commodities like grains, beans, oil, and gasoline have a significant influence on your monthly budget. This means that customers must spend more money to obtain the same goods that they previously purchased for less.
Inflation and buying power are inextricably intertwined. CPI and WPI have an impact on monetary policy, which in turn has an impact on interest rates on savings and loans. It also has a direct impact on your ability to save money and is crucial in the planning of your investments.
If the inflation rate is 7%, a hundred rupees earned will be worth only 93 rupees. As a result, one of your primary investment goals should be to keep up with or beat inflation. I hope this answer gave clarification about how inflation affects the price of the commodities . To outperform inflation, your assets must provide better returns than the rate of inflation.
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How Inflation Affects the Price of the Commodities?
pranav
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2 Year
2022-03-28T18:13:46+00:00 2022-03-28T18:13:47+00:00Comment
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