A COMPARATIVE STUDY OF INFLATION IN INDIA AND SRI LANKA

Abstract

The purpose of this study is to compare the inflation between Sri Lanka and India. Inflation indicates a decrease in purchasing power per unit of currency - loss of real value at the time of trading and the unit of account in the economy. Factors affecting inflation in India - Increased inflation, inflation, rising wages or an increase in government spending. Factors affecting the inflation rate in Sri Lanka include- Foreign exchange deficits, Exchange rate, economic growth.