Characteristic Features of Inflation

  • Increase in the supply of money i.e. increased availability of money.
  • increase in the general price level.
  • Decrease in the value of money i.e. money becomes worthless.
  • Scarcity of goods and services.
  • High demand for goods and services.
  • Increase in the cost of living i.e. high prices in the market.
  • Decrease in standard of living i.e, inability to get usual basic needs.
  • Increase in the money wages i.e. appreciation in salary amount.
  • Decrease in real wages i.e. the increased salary . now buys less than before.