INFLATION DUE TO COVID-19

According to economics, inflation can be defined as a general increase in the prices and fall in the purchasing value of money. In elementary words, it is the result of more money pursuing few commodities. since, we all know that COVID-19 is a global pandamic, it is causing a tremendous effect on the economic situation of our country. it is also being said that “COVID-19 could be the return of the inflation” but RBI said that the “the impact of COVID-19 on economy is still ambiguous”.

In past few days we have experencied the prominent downfall in economic growth. The Labour class which is the backbone of the Indian economy are returning back to their native places, so the production rate is decreasing sharply in this lockdown and this will be the root cause of the shortage of goods which will lead to inflation.
one such example is vegetable pricehike, it has increased which is witnessed by big basket and other sources.China which is one of the biggest exporter to India, has became the emerging point of this deadly virus, all the trading activities has been broken off which is also causing a huge influence on the economy. There is an imminenet risk of inflation due to COVID-19 but government is taking all the viable steps to stop it.