Inflation
Definition General increase in level of prices of bucket of goods
causes of Inflation Demad Pull Inflation
Cost Push Inflation
Changes in price level of represenatative basket of
CPI consumer goods and services
Changes in price level of represenatitive basket of
WPI wholsale goods
measure of level of prices of all doemstically produced
GDP Deflator goods and services in a country in an year
Tyes of inflation
Positive Inflation Increase in price
Negative inflation decrease in prices
Acceleration rising inflation rate
Deceleration falling inflation rate
Disinflation reduction in inflation over period of time
Which of the following measure a government can take
MCQ 1 in order to control rising inflation
A Increase money supply in economy
B Decrease lending rates
C Increase CRR
D None of the above
MCQ 2 Reason for inflation
A Increase in oil prices
B Increase in per capita income
C Flood in various part of country
D All of the above
Not a rise in single of product Overall Increase in Price Levels
Because of the increase in the overall demand of goods Reason can be increase in income
Because the increase in prices of
Supply decreases raw material/oil goes up
Consumer are more concerned about it
much brader measure of inflation because it takes
consideration all the final goods and services and not just a
representative basket (nominal GDP/real GDP ) *100
More money, people will spend more
People will have more money to spend , it will increase
inflation
Bank has to keep more money with RBI, less money in
market, demand will come down as purchasing power
comes down
Yes, cost push
Yes, demand pull
Yes, cost push
Q DP SP DP1
1 10 1 12
2 8 3 10
3 5 5 7
4 3 8 5
5 1 10 3
Economic
wide
deflation
Q DP SP SP1
1 10 1 2
2 8 3 4
3 5 5 6
4 3 8 9
5 1 10 11
Demand Pull Inflation
14
12
10
0
0.5 1 1.5 2 2.5 3 3.5 4 4.5 5 5.5
DP SP DP1
Cost Push inflation
12
10
8
6
4
2
0
0.5 1 1.5 2 2.5 3 3.5 4 4.5 5 5.5
DP SP SP1
Provisional Estimates of National Income and Expend
GDP, 2019-20 (at 2011- 12 Prices) - REAL
(` crore)
2017-18 2018-19 2019-20
S.No. Item
(2ndRE) (1stRE) (PE)
DomesticProduct
1 GVAatBasicPrices 12074413 12803128 13301120
2 NetTaxesonProducts 1100747 1178298 1264831
3 GDP(1+2) 13175160 13981426 14565951
4 NDP 11686409 12372051 12893977
FinalExpenditures
5 PFCE 7379819 7908057 8325907
6 GFCE 1343222 1478565 1652367
7 GFCF 4061195 4460967 4334091
8 CIS 215795 264415 269489
9 Valuables 192661 169734 192629
10 ExportsofGoodsandServices 2601777 2922543 2817660
10 ImportsofGoodsandServices 3078132 3342777 3115388
11 Discrepancies 458823 119923 89196
12 GDP 13175160 13981426 14565951
RatestoGDP
13 PFCE 56 57 57
14 GFCE 10 11 11
15 GFCF 31 32 30
16 CIS 2 2 2
17 Valuables 2 1 1
18 ExportsofGoodsandServices 20 21 19
19 ImportsofGoodsandServices -23 -24 -21
20 Discrepancies 4 1 1
21 GDP 100 100 100
NationalProduct
22 GNI 13029307 13829068 14405339
23 NNI 11540556 12219693 12733366
24 GNDI
25 NNDI
PerCapitaIncomeProductandFinalConsumption
26 Population*(inmillion) 1314 1327 1341
27 PerCapitaGDP(₹) 100268 105361 108620
28 PerCapitaGNI(₹) 99158 104213 107422
29 PerCapitaNNI(₹) 87828 92085 94954
30 Per Capita GNDI (₹)
31 PerCapitaPFCE(₹) 56163 59594 62087
National Income and Expenditures on Provisional Estimates of National Income and Expenditures on GDP,
0 (at 2011- 12 Prices) - REAL 2019-20 (at Current Prices) - NOMINAL
(` crore) (` crore)
PercentageChangeOverPre 2017-18 2018-19 2019-20 PercentageChangeOverPr
viousYear eviousYear
(2ndRE) (1stRE) (PE)
2018-19 2019-20 2018-19 2019-20
6 4 15513122 17139962 18343237 11 7
7 7 1585182 1831275 1996612 16 9
6 4 17098304 18971237 20339849 11 7
6 4 15334357 16991613 18221249 11 7
7 5 10090759 11254014 12262064 12 9
10 12 1838117 2104235 2446579 15 16
10 -3 4799139 5493320 5472006 15 0
23 2 251062 320076 338357 28 6
-12 14 219322 200184 224006 -9 12
12.3 -3.6 3211521 3766294 3745473 17.3 -0.6
9 -7 3751389 4468166 4298950 19 -4
439775 301280 150314
6 4 17098304 18971237 20339849 11 7
59 59 60
11 11 12
28 29 27
2 2 2
1 1 1
19 20 18
22 24 21
3 2 1
100 100 100
6 4 16913491 18768912 20118353 11 7
6 4 15149545 16789288 17999754 11 7
17319231 19262652 20630319 11 7
15555285 17283028 18511719 11 7
1 1
5 3 130124 142963 151677 10 6
5 3 128718 141439 150025 10 6
5 3 115293 126521 134226 10 6
131805 145159 153843 10 6
6 4 76794 84808 91440 10 8
Provisional Estimates of GVA at Basic Price by Economic Activity
Industry 2017-18 2018-19
(2ndRE) (1stRE)
1.AgricultureForestry&Fishing 1828329 1872339
2.Mining&Quarrying 366496 345069
3.Manufacturing 2190791 2316643
4.ElectricityGasWaterSupply&o
274104 296560
therUtilityServices
5.Construction 962009 1020314
6.TradeHotelsTransportCommu
nicationandServicesrelatedtoBr 2309860 2488049
oadcasting
7.FinancialRealEstate&Professi
2609016 2786855
onalServices
8.PublicAdministrationDefence
1533809 1677298
andOtherServices
GVAatBasicPrices 12074413 12803128
PFCE Private final consumption expendit
GFCE Government final consumption expen
GFCF Government fixed capital formati
CIS Changes in stock
Companies Demand capitals goods (Machine
147 148 143
13175160 13981427 14565951
NDP= GDP-Depreciation
changing technology ,
IT industry is high depreciation Electronic industry
laptops
Low depreciation nuclear power plant very low depreciation
NDP+ Net factor income (NFI) from
Net national income NNI=
abroad
Factor payments from abroad -
NFI remittances
factor payments to abroad
GVA+Taxes on products -
GDP=
subsidies on products
GNI= GDP+NFI
DEP= GDP-NDP GNI-NNI
NFI= NNI-NDP GNI-GDP
Provisional Estimates of GVA at Basic Price by Economic
by Economic Activity (at 2011-12 prices) (` crore)
Activity (at Current Prices) (` crore)
2019-20 PercentageChangeOverPr 2017-18 2018-19 2019-20
eviousYear
(PE) (2ndRE) (1stRE) (PE)
2018-19 2019-20
1948110 2.4 4 2796908 2922846 3257443
355680 -5.8 3.1 357788 389322 393102
2317280 5.7 0.03 2546608 2766767 2775587
308832 8.2 4.1 425101 456413 486516
1033276 6.1 1.3 1197931 1344279 1384895
2577945 7.7 3.6 2812706 3142620 3316653
2915680 6.8 4.6 3206559 3622130 3842524
1844316 9.4 10 2169522 2495584 2886517
13301120 6 3.9 15513122 17139962 18343237
onsumption expenditure Consumer expending
al consumption expenditure Govt expending on goods and
services
Acquisition of produced assts, second
t fixed capital formation hand assst purchase
anges in stock
Intermediate goods are consumed in
pitals goods (Machines) the production process hence
different from cpital good
not related to labor
Check : what is
imports and and
factor income?
exports capital
negative means
what
GVA at Basic Price by Economic
rent Prices) (` crore)
SHARE of
PercentageChangeOv real GVA
erPreviousYear 2019-20
2018-19 2019-20
4.5 11.4 14.64621
8.8 1 2.674061
8.6 0.3 17.42169
7.4 6.6 2.32185
12.2 3 7.768338
11.7 5.5 19.38141
13 6.1 21.92056
15 15.7 13.86587
10.5 7 100
