Understanding Inflation and Its Causes ☕

A coffee used to cost ₹25 in 2010, and today it costs ₹40—this is the typical example you hear when people explain what is inflation. There's nothing wrong with it, but there's more to inflation than just the price increase. It's important to understand the nuances since, inflation affects everything from how much you can invest to the returns on your investments. Even more so, given the phenomenal spike in inflation across the world, including India.

In this video, Karthik explain what is inflation, what causes it and how do central banks like RBI try to control inflation. Along with the video, we'd recommend you read these two related Varsity chapters:
1. https://zerodha.com/varsity/chapter/key-events-and-their-impact-on-markets/
2. https://zerodha.com/varsity/chapter/basics-of-macro-economics/