By Aftab Ahmad Khan
Inflation, which is a phenomenon with momentous economic, social and political consequences, may be broadly defined as a sustained increase in the general price level. It may, however, be noted that all prices need not rise together. Relative prices may increase at varying levels, but in the process push up the general price level. Cyclical swings in prices cannot be termed as inflationary e.g. wheat shortfalls in one season may cause its price to rise but the next year normal production could adjust its price to equilibrium level. Continue reading »