Inflation and Its Effect on Retailers
's Inflation and its effect on Supply Chain Industry (Retail) By Kamal Deep
Introduction
This white paper details out how inflation is affecting the Retail economy and its health. This paper also suggests what care needs to be taken by the Retailers for tackling inflation.
Purpose of this Project
For applying the Macro Economics class room learning’s practically
Scope of this Project
Inflation effects are discussed only for Retailers in Supply Chain domain. Evaluating effects on Retail industry by Inflation (Demand pull, Cost push), Deflation is in scope of this project.
About Inflation:
Inflation is an increase in the average level of prices for goods and services in an economy over a period of time. It represents how economy as a whole is growing. It is important indicator of the economy. Main cause of inflation is unbalancing of Supply and Demand of goods.
Visual data representation on Inflation | Today | After 1 Year | After 10 Years | In Pocket | 10 | 10 | 10 | In Bank at 5% | 10 | 10.05 | 25.27 | Cost of good (inflation at 3%) | 6 | 6.18 | 10.52 |
Types of Inflation: * Deflation: a fall in the general price level. * Disinflation: a decrease in the rate of inflation. * Hyperinflation: an out-of-control inflationary spiral. * Stagflation: a combination of inflation, slow economic growth and high unemployment. * Reflation: an attempt to raise the general level of prices to counteract deflationary pressures. * Depression: a severe and prolonged recession characterized by inefficient economic productivity, high unemployment and falling price levels
Measure of Inflation:
The annual rate of inflation is calculated for any year by subtracting the base year index from the current year index and dividing that difference by the base year index. Then multiply that figure by 100 to express rate of inflation as a
Introduction
This white paper details out how inflation is affecting the Retail economy and its health. This paper also suggests what care needs to be taken by the Retailers for tackling inflation.
Purpose of this Project
For applying the Macro Economics class room learning’s practically
Scope of this Project
Inflation effects are discussed only for Retailers in Supply Chain domain. Evaluating effects on Retail industry by Inflation (Demand pull, Cost push), Deflation is in scope of this project.
About Inflation:
Inflation is an increase in the average level of prices for goods and services in an economy over a period of time. It represents how economy as a whole is growing. It is important indicator of the economy. Main cause of inflation is unbalancing of Supply and Demand of goods.
Visual data representation on Inflation | Today | After 1 Year | After 10 Years | In Pocket | 10 | 10 | 10 | In Bank at 5% | 10 | 10.05 | 25.27 | Cost of good (inflation at 3%) | 6 | 6.18 | 10.52 |
Types of Inflation: * Deflation: a fall in the general price level. * Disinflation: a decrease in the rate of inflation. * Hyperinflation: an out-of-control inflationary spiral. * Stagflation: a combination of inflation, slow economic growth and high unemployment. * Reflation: an attempt to raise the general level of prices to counteract deflationary pressures. * Depression: a severe and prolonged recession characterized by inefficient economic productivity, high unemployment and falling price levels
Measure of Inflation:
The annual rate of inflation is calculated for any year by subtracting the base year index from the current year index and dividing that difference by the base year index. Then multiply that figure by 100 to express rate of inflation as a