Inflation: Lets quit crying

'Inflation' : The word everybody knows but only a few understand.
Do your favorite thing; Google.
Type this word in the search engine and you will find top news channels and daily newspapers, talking and writing about the same.
Why so over-hyped? Why so cribbed about? Had ever been given a thought?
Lets do it now.

In economic terms, inflation is the percentage change in the value of the Wholesale Price Index (WPI) on a year-on-year basis. It effectively measures the change in the prices of a basket of goods and services in a year.

Simpler?
Its nothing but a rise in the general level of prices of goods and services in an economy over a period of time. For instance, say, soap A of Company X was being sold at a price of Rs. 10 but due to reasons like increase in taxes or changes in production and distribution cost, the product is now being sold at Rs. 12. This means that the price of the product has risen and the value of the currency has declined, which is inflation.

We are Indians and undoubtedly, we have a tendency to shape our minds in a certain perspective. So, when we hear 'the price of so-and-so product has increased', the instant reaction is 'God knows when this era of inefficient government and inflation will end'.

Agreed. There are negatives like the worst impact on the consumers. High prices of day-to-day goods make it difficult for consumers to afford even the basic commodities in life. This leaves them with no choice but to ask for higher incomes. Hence, the government tries to keep inflation under control.
But at the same time, there are positives which are highly ignored.
If we take a deeper glance, probably the most significant effect of inflation is its effect on the revenues of the government. When inflation is higher than previously thought and planned with, the revenues of the government increases with further improves the budget balance.
Contrary to its negative effects, a moderate level of inflation characterizes a good economy. An inflation rate of 2 or 3% is beneficial for an economy as it encourages people to buy more and borrow more, because during times of lower inflation, the level of interest rate also remains low.
Hence, the government as well as the central bank always strive to achieve a limited level of inflation.
These are just two of the pros. We always have a list of why-good and why-not for every dimension of the topic we discuss about.

I am not saying that inflation is a good indicator to judge any economy but at the same time, over-emphasizing on the cons is also not justified.
There is a need to understand the concept and its overall impact to actually make a proper conclusion.

The inflation rate in India was recorded at 6.10 percent in August 2013, reported by the Ministry of Commerce and Industry. The main reason of inflation here is the Wholesale Price Index. There are countries with comparatively higher and lower values of inflation rates. But in India, besides inflation, there exist a major problem of over-population. Every link is connected and before jumping to the next step, the prior should be taken care of.
And once you know the weakness, you can always improve for the same.

So, before passing a judgement with 'Oh, it could have been better with this-and-that-condition', lets try to make a change. And change begins with understanding.

Quit cribbing. See the difference!
You definitely won't be shouting, 'Mehaangaayi, haye haye!'..