INFLATION
Inflation is a problem burning since the concept of economy came. This is a problem economist’s fight to solve and bring down but still now no permanent solution to this burden on the economy.
Inflation is defined as a sustained increase in the general level of prices for goods and services. It is measured as an annual percentage increase. As inflation rises, every rupee you own buys a smaller percentage of a good or service. Thus people loose purchasing power in short.
However, there is a difference between “money inflation'' and “price inflation”.
When the prices rise due to an expansion of the money supply, it is 'money inflation' but in the later phase more and more money supply has to be expanded an as such this is known as 'price inflation'.

THEORIES OF INFLATION

Two main theories of inflation mainly: 1. Demand Pull Inflation: This theory can be summarized as "too much money chasing too few goods". In other words, if demand is growing faster than supply, prices will increase. This usually occurs in growing economies. Demand pull inflation occurs when the demand for goods and services exceeds their available supply at the existing prices. 2. Cost Push Inflation: When companies' costs go up, they need to increase prices to maintain their profit margins. Increased costs can include things such as wages, taxes, or increased costs of imports.

COST OF INFLATION
Almost everyone thinks inflation is evil, but it isn't necessarily so. Inflation affects different people in different ways. It also depends on whether inflation is anticipated or unanticipated. If the inflation rate corresponds to what the majority of people are expecting (anticipated inflation), then we can compensate and the cost isn't high. For example, banks can vary their interest rates and workers can negotiate contracts that include automatic wage hikes as the