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Is Inflation always harmful?


- Inflation is a measure of economy whether shrinking or growing but mostly inflation results in shrinking of the economy.

- It results in increase in prices of the day to day commodities.

- It also increases the interest rates, loans and other means by which the people are borrowing or lending money. Thus, hurting regular people more.

- It creates confusion, uncertainty leading to less investment and low international competitiveness.

- It leads to decline in income called as stagnant wage growth.


- Inflation is not harmful as it acts as a symptom for growing economy.

- Inflation allows prices of various commodities to adjust according to the budget of the consumers.

- It results in people or the seller making good amount of profit which in turn boosts the economy.

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