Inflation is common phenomenon in any economy. During inflation money value in purching sense comes down as the prices of the commodities would go up. Business entities like like,entertinment and financial services provides do get the brunt of this inflation as people try to skip or postpone their spending pattarn. A lay man who may not know scientic way to calcualte the inflation ,but very much aware the prices of the goods would be come dearer.
Inflation is a challenge for the business firms. Unless they have a clear strategy to increase their sales other wise there is a possibility to swept away by the inflation wave.
Inflation affect the investment decisions. You can consider the following points before investing your funds.
Investment should consider the current inflation rate other wise net earning may not be effective. i.e return on investment is on 10% where as inflation rate is 12% the net value of your investment is on the negetive side.
Investment should consider your family consumption. During inflation consumption budget would goup due to in crease in prices.
Inflation period may be your money can be invested in
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