Andhra Lanjala Ph.No's(Hyderabad Lanjalu phone numbers)

Friday, 7 March 2014



It is interesting to note how most people think of inflation. Apparently, the most prevalent concept of inflation is something like what happens to spectators at a cricket match. At some point during the match, the people in the front rows of the stadium rise to their feet to get a better glimpse of what is happening on the field. As a result, the spectators in the back rows cannot see the action clearly so they rise up too. Very soon, everyone is on their feet.   Another perception among most people is that inflation drives up the prices of everything uniformly. This is why it is commonly believed that real estate prices rise simply because the cost of everything else has also risen. This is incorrect. The fact is that real estate prices will either fall or remain static in an inflationary environment.   Inflation is a dynamic that is largely dictated by the cost of credit. This is how it works - the cost of essentialities such as food grains and petrol rises, while the common man's income remains the same. In other words, his spending power reduces. Banks make a note of the fact that the baseline cost of living has increased and recalibrate their loan interest rates upward.

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