Who is eating up your money?

Ever purchased an annual subscription instead of monthly, because that’s economical? Yes, annual subscriptions are always discounted. Well, the trick here is a simple concept of inflation. Inflation is a pain that hurts everyone equally. In simple words Inflation is something that reduces your buying power every second in any economy like India. Therefore, Inflation […]

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Ever purchased an annual subscription instead of monthly, because that’s economical?

Yes, annual subscriptions are always discounted.

Well, the trick here is a simple concept of inflation.

Inflation is a pain that hurts everyone equally.

In simple words Inflation is something that reduces your buying power every second in any economy like India.

Therefore, Inflation & opportunity cost is considered while pricing a product or service.

This is why annual subscriptions always look cost efficient.

So, inflation is good.

Wait

Remember, buying Cadbury eclairs for Re 1/-, now it costs Rs 2/-. 

Why are you paying double for the same thing?

Again Inflation.

So Inflation is bad.

Well it’s a topic of debate but in a stable economy, a positive steady inflation is required for growth of the economy.

Disclaimer: I am not giving away any money.

1 lakh today = 1.06 lakh next year, adjusted to inflation at 6%p.a.

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