Zero inflation and consistant rise in food price

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Information about Zero inflation and consistant rise in food price

Published on March 6, 2014

Author: sarbomania



Inflation    In economics, inflation is a persistent increase in the general price level of goods and services in an economy over a period of time. It's usually measured as an annual percentage, just like interest rates When the general price level rises, each unit of currency buys fewer goods and services

Zero Inflation    Zero Inflation is a state when the economy reaches a state when there is no inflation Zero inflation is where the economy reach a state of 0% inflation rate. It is a big achievement for every economy because in the present day it is not at all easy to establish a zero inflation economy.

Advantages    Zero inflation economy enables to lessen the price distortion Reduces the uncertainty involved in price drift Aids in enhancing the economic growth along with adding liquid money to the economy Best example is USA. It had faced a high inflation during the 1970s but after a long effort they could establish an economy that was clear off inflation. They reached a stage of zero inflation.

Food Price   Food is any substance containing nutrients, such as carbohydrates, proteins, and fats, that can be ingested by a living organism and metabolized into energy and body tissue Price is the sum or amount of money or its equivalent for which anything is bought, sold or offered for sale. Food price is the amount paid to buy certain quantity and amount of food materials.

Food Price Rise Reasons: 1. Increase in population 2. More demand of food 3. Less productivity 4. Export of food 5. Holding by marketeers 6. Devaluation of money 7. Government policies

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