Intern ation al J o u rna l o f App lied Resea rch 20 17; 3(1): 23 -34

ISSN Print: 2394-7500

ISSN Online: 2394-5869
Impact Factor: 5.2
The impact of inflation on education
IJAR 2017; 3(1): 23-34
www.allresearchjournal.com
Received: 06-11-2016 Dr. Jayeeta Bhattacharjee
Accepted: 07-12-2016
Abstract
Dr. Jayeeta Bhattacharjee
Faculty, Vivekananda College
This paper explains about the impact of inflation on education. Inflation is burning issue which hinders
of Education, Karimganj, the economic growth of the country. Inflation is dangerous because it directly impacts on standard of
Assam, India living of the people. The responsibility for government and politicians, economists is to protect/ safe
guard common man from inflation. Inflation is price raise of goods and services, which decrease the
purchasing capacity of the people. When the general price level rises, for each unit of currency fewer
goods and services can be purchased. Consequently, the purchasing power of customer would gradually
decrease. In this situation the real value of currency would loss, the value of goods and services will
increase. The sample of the present study consisted of 13 people involved in different professions. Data
were collected through survey method. Data of the present study are analyzed with bar diagram. The
findings of the study led to the conclusion that inflation or price hike is closely related with education.

Keywords: Inflation, burning, economic, demand, supply, government policies

Introduction
Inflation is one of the most frequently used terms in economic discussions, yet the concept is
variously misconstrued. There are various schools of thought on inflation, but there is a
consensus among economists that inflation is a continuous rise in the prices. Simply put,
inflation depicts an economic situation where there is a general rise in the prices of goods
and services, continuously. It could be defined as a continuing rise in prices as measured by
an index such as the consumer price index (CPI) or by the implicit price deflator for Gross
National Product (GNP). Inflation is frequently described as a state where “too much money
is chasing too few goods”. When there is inflation, the currency losses purchasing power.
Today we are facing high rate of inflation. Inflation is a state in which value of money is
falling that is price is rising. Its main burden falls heavily on the lower, middle and poor
section of the society. As a result of inflation price of certain important articles of
consumption such as food articles, clothes, shelter that is needed for maintaining the
minimum needs of life is increasing at a high rate. With increasing expenditure on essential
goods, the expenditure on other purpose that is educational purposes has declined because it
is impossible for the above section to cope up with the expenditure which is needed for
maintaining educational purpose. On 1st April 2010 the union govt. has launched “The Right
to Education Act” that entitles all children between 6 tom14 years should get free and
compulsory education. But it is observed that there are some parents of the poor classes are
not interested to avail free education facilities from the school since the present inflation has
created serious difficulties for maintaining their family living hood. As a result they think
that it is more benefited for them to send their children somewhere for earning money for
family contribution.
But the lower middle class people are suffering more due to price hike or inflation since they
are practicalize for maintaining their families by following the proverb “cut your coat
according to your cloth”; that is they are facing financial obstacles for providing further
educational facilities to their children after Xth standard due to inflation. The modern
scientific, technical, medical, paramedical courses have become out of reach for their
children though the government has established many institutions for such courses but these
Correspondence
Dr. Jayeeta Bhattacharjee
are only for those students who are belonging to high society because such courses are too
Faculty, Vivekananda College expensive and the poor/ lower middle class students are unable to attain the courses.
of Education, Karimganj, The price hike or inflation is not only hampering to cope up the day to day essentialities but
Assam, India also it becomes impossible for the poor people or those people living below poverty line to
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provide basic education to their children because now a days The rising prices of food products, manufacturing products,
much money is needed to get basic necessities as compared and essential commodities have pushed inflation rate further
to last year due to price hike. It is needless to say that after in India. How food prices have risen since 2007 is shown
independence Indian govt. has adopted and implemented below
various economic policies for all section of society but it is Food articles: 7.02% (in 2007) to 17.41% in January 2010.
unfortunate to say that only 30% of population is enjoying Food products: 3.43% (in 2007) to 22.55% in January 2010.
the benefit of these policies and remaining 70% of the Food commodities: 5.60% (in 2007) to 19.42% in January
population has not been enlightened by the benefits of these 2010.
policies. It is also observed that many attentive and good Food grains: 6.27% (in 2007) to 17.89% in January 2010.
caliber students are unable to get proper guidance for career Cereals: 6.27% (in 2007) to 13.69% in January 2010.
oriented courses. Pulses: 2.14% (in 2007) to 45.62% in January 2010.
Rice: 6.05% (in 2007) to 12.02% in January 2010.
Objectives of the study Wheat: 6.77% (in 2007) to 14.86% in January 2010.
1. To make a brief study about the term ‘inflation’. Dairy products: 6.08% (in 2007) to 12.87% in January 2010.
2. To discuss the causes lying behind this burning problem Eggs, fish and meat: 6.38% (in 2007) to 30.71% in January
that is inflation. 2010.
3. To make a suitable study about the effects of inflation. Sugar: (-) 14.69% (in 2007) to 58.94% in January 2010.
4. To see how inflation adversely affects the present
education system through survey reports. Causes of inflation
5. To provide some suitable solutions of this serious There are a few different reasons that can account for the
problem that is inflation. inflation in our goods and services; let’s review a few of
them.
Methodology ‘Demand – pull inflation’ refers to the idea that the economy
The effectiveness of any study depends mainly on the actual demands more goods and services than available.
methodology and procedure adopted in the study. A sound This shortage of supply enables sellers to raise prices until
and well organized methodology includes the appropriate equilibrium is put in place between supply and demand.
strategy in stepwise execution of the investigation. It leads The ‘cost - push theory’, also known as “supply shock
the investigation to the target he/ she aim at. A good inflation”, suggests that shortages or shocks to the available
research always follows a sound methodology and supply of a certain good or product will cause a ripple effect
procedure otherwise the findings of the study will be of through the economy by raising prices through the supply
generalized facts. chain from the producer to the consumer. You can readily
In order to analyze the study ‘The Impact of Inflation on see this in oil markets. When OPEC reduces oil supply,
Education’ the researcher have gone through the deep study prices are artificially driven up adequately, and result in
of the causes and effects of recent price hike or inflation and higher prices at the pump.
surveyed the people of various profession which evidently Money supply plays a large role in inflationary pressure as
reflected the impact of inflation on each and every family. well. Monetarist economists believed that if the Federal
Reserve does not control the money supply adequately, it
Concept of inflation may actually grow up at a rate faster than that of the
Today, the biggest concern facing the country is raising potential output in the economy, or real GDP. The belief is
prices. Inflation is defined as a sustained increase in the that this will drive up prices and hence, inflation. Low
general level of the prices of goods and services. It is a interest rates correspond with high levels of money supply
measure in an annual percentage increase. and allow for more investment in big business and new
Food inflation is covering near 20%. Everyone is facing the ideas which eventually leads to unsustainable levels of
brunt of rising prices. Food prices are soaring…..all inflation as cheap money is available.
essential items like vegetable, oil, milk, sugar are getting Inflation can artificially be created through a circular
costlier. Retails and real estate rates have almost doubled in increase in wage earners demands and then subsequent
just few months in most cities. The real estate prices are at increase in producer costs which will drive up the prices of
high rates making life miserable, especially for people who their goods and services. This will then translate back into
have migrated to cities for jobs. Inflation hits us badly as higher prices for the wage earners or consumers. As
prices keep rising. What we could buy for Rs 100, some demands go higher from each side, inflation will continue to
months ago would now cost nearly double. As a result, our rise.
savings will come down. As prices rise, the purchasing Increase in production costs – let us take an example. The
power of money goes down too. workers demand a wage increase, and actually get it. This
Inflation hits retired folk and people with fixed income very means that the labor cost per unit will increase for the
badly. Inflation destabilizes the economy as consumers and manufacturer and it will be passed to the ultimate consumer.
investors change their spending habits. The consumers will have to shell out more to purchase the
Economists attribute inflation to a demand pull theory. same amount of goods, leading to inflation in prices.
According to this, if there is a huge demand for products in Taxation – indirect taxation, such as VAT, sales tax, excise
all sectors, it results in a shortage of goods. Thus prices of tax etc has the effect of increasing the cost of goods for the
commodities shoot up. eventual consumers, leading to increased inflation. On the
Another reason for inflation is the cost – push theory. It says other hand, a decrease in income tax rate will mean more
that labour groups also trigger inflation. When wages for disposable income for consumers – again leading to higher
laborers are increased, producers raise the prices of products inflation.
to make up for salary hike.
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Increase in price of imported raw materials – the best For 2009, Indian inflation stood at 11.49%. This rate reflects
example for India would be petroleum – almost our entire the general increase in prices, taking into account the
requirement in petroleum is imported. An increase in prices purchasing power of the common man. According to
as during the summer of 2008 can really accelerate inflation economic survey report for 2009-10, economic growth
in India. decelerated to 6.7% in 2008-09, from 9% in 2007-08. The
Depreciation in exchange rates – this increases the prices of economy is expected to grow by 8.7% in 2010-11, with a
imports into the country, and decrease the price of exports return to a growth rate of 9% in 2011-12. The Indian method
abroad. for calculating inflation, the wholesale price index, is
Decrease in interest rates – this leads to an increase in different from rest of the world. Each week the wholesale
money supply, leading to inflationary pressure. In other price of a set of 435 goods is calculated by the Indian
words, the mandatory policies adopted by the RBI can affect government. Since these are wholesale prices the actual
inflation rates, at least to a certain extent. prices paid by the consumers are far higher. In times of
Rapid economic growth – especially it takes place in the rising inflation, this also means that the cost of living
markets to which the country exports. increases are much higher for populace. Cooking gas prices,
for example, have increased by around 20% in 2008. With
How is inflation measured? most of India’s vast population living close to or below the
Inflation is measured by using the CPI – Consumer Price poverty line, inflation acts as a ‘Poor man’s tax’. This effect
Index. The CPI consists of an index comprising the goods is amplified when food prices rise, since food represents
‘used by an average customer’. The CPI figure at the more than half of the expenditure of this group. Economic
beginning of the period is taken, and then the percentage growth in emerging markets has slowed but is far from over.
change is included. This gives the rate of inflation. With the BRIC countries (Brazil, Russia, India and china)
For example, alone accounting for more than 3 billion people, and with
CPI figure on March 1 = 100 these people consuming more resources every year, it is
CPI figure on March 7 = 110 likely that higher inflation rates will be with us for a good
Rate of inflation for the week ended March 7 = (110 - 100)/ while yet – and that is worrying news for the government of
100 India.
= 10%
India’s food inflation rate eases to 15.52% on January
Effects of inflation 20, 2011
The following are the effects of inflation – New Delhi, January 20, 2011: food inflation has dropped to
 Increase in prices of goods and services – the most 15.52% for the week ended January 8 from 16.91%
visible effect for the general public. recorded in the previous week on the back of high vegetable
 Decrease in real income. prices. Onions in particular, continue to burn a hole in the
 It encourages hoarding – as people anticipate further pockets of common people. Primary articles inflation for the
increase in prices. week stood at 17.03%, a drop from 17.58% in the previous
 Decrease in the value of investments – especially week. Figures for the fuel group remained unchanged at
affecting people with fixed income – such as 11.53%.
Pensioners. Unlike previous occasions the inflation is not driven by
 It can lead to a wage spiral – people will demand higher prices of food grains or global prices. The sharp rise in
wages to cope with increased prices, and increased prices of essential commodities such as fruits, vegetables,
wages will push the prices further up. milk, eggs, meat and fish which have 10% weightage on the
 Lowers the domestic saving rate – since people prefer WPI (Wholesale Price Index) is pushing the inflation
to spend the money rather than watch it diminish in beyond control.
value. The Reserve Bank of India (RBI) recently said that food
inflation seems to be pointing towards changing
When inflation becomes very acute, hyperinflation may consumption patterns as India gets more affluent and people
result – a very dangerous situation for the economy. move towards more high value commodities.

Indian inflation India’s food inflation rate eases to 16.91% on January

On March 19, 2010, the Reserve Bank of India raised its 13, 2011
benchmark reverse repurchase rate to 3.5%, after this rate New Delhi, January 13, 2011: India’s food inflation rate
touched record lows of 3.25% the repurchase rate was raised ceased to 16.91% for the week ended January 1, 2011 from
to 5% from 4.75% as well, in an attempt to curb Indian 18.32% recorded in the previous week, an official statement
inflation. said here today, quoting provisional data. The statement
India’s 2009–2010 economic survey report suggests a high showed that the inflation rate for the fuel also declined
double digit increase in food inflation, with signs of slightly to 11.53% from the previous week’s level of
inflation spreading to various other sector as well. The 11.63%. The dip in the inflation rate comes at a time when
deputy governor of the Reserve Bank of India however the government is grappling with food prices and is facing
expressed his optimism in March 2010 about an imminent increasing flak from the opposition and other quarters about
easing of Indian wholesale price index based inflation, on its performance on this front. The prices of onions were up
the back of falling oil and food prices. 70.70% from a year ago as compared to this year.

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2010 Average
Item 1994-95 to 2004-05 2005 2006 2007 2008 2009
January 2006-09
1. All commodities 5.90 4.74 4.82 4.82 9.12 2.01 8.54 5.19
2. Non-food commodities 6.02 5.37 4.72 4.54 9.55 - 1.76 4.53 4.27
3. Food articles 5.91 3.94 6.83 7.02 6.64 12.32 17.41 8.20
4. Food products 5.33 1.58 2.55 3.43 9.80 13.79 22.55 7.39
5. Food commodities (3 & 4) 5.64 2.97 5.09 5.60 7.87 12.90 19.42 7.86
Food grains 5.54 3.83 9.71 6.27 6.37 14.14 17.89 9.12
Cereals 5.57 3.68 6.63 6.97 7.20 12.96 13.69 8.44
Pulses 5.46 5.04 32.05 2.14 1.30 21.81 45.62 14.33
Rice 5.00 4.01 2.13 6.05 8.97 15.96 12.02 8.28
Wheat 5.93 1.08 12.99 6.77 5.06 6.83 14.86 7.91
Oil seeds 5.89 - 6.11 - 3.96 26.58 17.46 .92 10.05 10.25
Fruits & vegetables 7.47 7.51 2.24 6.49 5.94 11.77 8.33 6.61
Dairy products 5.20 .11 4.20 6.08 8.38 6.12 12.87 6.19
Milk group 5.57 .73 4.48 8.17 7.87 8.93 13.99 7.36
Egg, fish and meat 6.46 9.46 6.72 6.38 3.75 14.44 30.71 7.82
Edible oils 4.85 - 7.19 1.23 13.11 12.52 - 6.59 - 1.17 5.07
Sugar 4.06 15.09 4.83 - 14.69 5.62 36.34 58.94 8.02
Growth in food output (% a year) 2.39 0.55 5.87 4.10 5.39 1.60 - 02 AE 4.24

Fig 1: GFD and Inflation

Fig 2
India Inflation Rate

Fig 3
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Impact of inflation on education increased to 107.05%, which is why we pay more than
Inflation has created serious impact on education now a double for everything we buy. On the other hand, during the
days. The reopening of schools has not been good news for same time, tuition increased a whopping 466.80%.
many middle class parents. For, they see a daunting task Now a days many schools have increased tuition fees due to
ahead to bear the additional expenses for their wards in the higher overhead costs. Fuel and labor costs continue to rise.
face of rising costs of everything. Be it school fees, books Many older colleges are in need of renovation or
and notebooks, uniforms conveyance – the costs have gone replacement. The demand for expanded libraries and new
up by an average 12% this year. Parents say this rise is over research and computer labs is at an all-time high. Some
what the costs were during the last academic session. This schools also need additional security measures. Yet, the
year the price of digest has risen by 12 to 13% compared to much reason tuition continues to rise is a dramatic change
last year’s, while in case of notebook the rise is more than that took place.
10%. In school uniforms, the rise has been anywhere When the government made it exceptionally easy for
between Rs 50 to Rs 100. In addition to these expenses, students to borrow massive amount of money the colleges
there is another hurdle. Coaching classes have become sort followed the lead by increasing their tuition rates. This
of compulsory. And the fees in case of coaching classes combination leads to record level borrowing. Today the
have also gone up. The hike in petrol prices has affected the average undergraduate student loan debt is nearing Rs. Rs
costs of conveyance, too. Auto rickshaw drivers are 9000000 crores (appx). Those who go on to graduate scale
charging Rs 100 to Rs 150 more than what they charged last often end up with an additional Rs. 600000 (appx) medical
year. students report and average accumulated debt from all years
Another thing that troubles many parents is that the earnings Rs 40265000 (appx). True, there is more money available
are not increasing in proportion to the rising expenses. today for those wanting an advanced degree. The colleges
College tuitions soar every year, advancing far in excess of talk in terms of big financial aid packages, but it is what
the inflation rate. The overall inflation rate since 1986 makes up the aid package that is important.

Fig 4

Construction of an Intergenerational Inflation Rate (IIR) to education than their parents did. Conversely if the value of
gauge the responsiveness of student outcomes (i.e. student education decreases, children are likely to need more
retention) to varying background credential inflation, seen education than their parents to achieve the same social class.
here as a “macro-level condition” effecting student Education credentials have devalued during the twentieth
educational attainment. century. This devaluation was largely caused by ‘over-
Now a days it has been seen that relative to working-class schooling’, i.e. a vast expansion in educational attainment
children, children of more advanced social classes are more that was not equated by an upgrading of the labour market.
ambitious and achieve higher levels of education. At a There is a positive correlation between the relative value of
relatively early point in their educational career, most the high school diploma, and the proportion of those
working class children have already met the goal of attaining it. This monotonic increase can be seen for both
avoiding downward mobility. Middle class children those students with a parent that is a high school graduate,
generally need to acquire much higher levels of education to and those students without any parent graduating high
achieve their social class. school. But for those students with a parent that is a high
All else being equal, children should need only as much school graduate, the proportion is slightly higher than for
education as their parents to enter the same social class as those without.
their parents. If the values of education credentials are not In order to throw different view about the topic for the
constant over time, however this simple relationship will not common people enclosed survey report has been worked
hold. If certain education credentials increase in value from out.
generation to next, children will typically need less

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International Journal of Applied Research

Survey No. 1
Name Arati Chakraborty
Age 58 years
Occupation L P Teacher
Number of family members 10
How many earning member are there in your family? 04
What is your husband’s profession? Retired L P Teacher
How much money earned by your family in a month? Rs 52000
How much money do you earn in a month? Rs 12000
How many children have you? 4
First son is govt. service holder. Second and third sons are engaged
Which class they are reading?
in business. Fourth son is reading in H.S. 2nd year (science).
Now a days prices of essential foods are rising at a high rate but we
What is your view about recent price hike?
are surviving ourselves since 4 members of our family are earning.
Do you think that the sum of money you have spent this year for the
study of your child whether it is increasing or decreasing as compared Obviously increasing.
to last year?
The amount you save in a month, whether it is increasing or
Decreasing because expenditure is increasing.
decreasing as compared to last year or why?
What is your view about higher study? Higher study plays a very important role to achieve success in life.
Yes, we are all very interested for higher study of our last child. His
Do you want that your child/ children should go for higher study? elder brothers are even ready to spend lakhs of rupees for any
higher courses.
Higher study is only for the children of higher society – is it true or Partly true. In these days of inflation higher study courses are
false? affordable for higher societies. i. e. higher income group classes.
It is fact that the student of below poverty line has to face
What is your view about the study of talented student living below
difficulties to go through higher study due to poor condition of
poverty line?
family.
Do you think that recent price hike is creating a continuous problem
Yes.
for the study of student living below poverty line?

Survey No. 2
Name Tapas Roy
Age 48 years
Occupation Service
Number of family members 06
How many earning member in your family? 03
What is your wife’s profession? House wife
How much money earned by your family in a month? Rs 50000
How many children have you? Rs 30000
How much money do you earn in a month? 2
Which class your children are reading? One is reading in B.A. 2nd year and the other one in H.S. 1st year (science).
India is not self sufficient in petro production. India has to depend upon
OPEC countries. When OPEC countries hike the price of petro products,
its reflection falls on our country. In this sense price hike is justified. But
What is your view about recent price hike?
on the other hand, it appears to me that India govt. failed to control the
Indian market results of which recent price rise of daily use materials
become excessively high.
Do you think that the sum of money you have spent this year
for the study of your children whether it is increasing or Obviously increasing.
decreasing as compared to last year?
The amount you save in a month, whether it is increasing or
Decreasing.
decreasing as compared to last year or why?
Higher study is becoming costly day by day. Whereas higher study at
What is your view about higher study? present days becomes obligatory for each and every student. Without
higher study, you can’t expect any job at present.
Do you want that your children should go for higher study? Certainly.
Higher study is only for the children of higher society – is it At present it appears that higher study for higher society because of the
true or false? high cost involvement in the study.
What is your view about the study of talented student living India govt. / state govt. should help the talented student living below
below poverty line? poverty line by introducing scholarship.
Do you think that recent price hike is creating a continuous
Yes.
problem for the study of student living below poverty line?

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Survey No 3
Name Rajib Dey
Age 43 years
Occupation Science graduate teacher
Number of family members 10
How many earning member are there in your family? 02
What is your wife’s profession? Asst. teacher, govt. school
How much money is earned by your family in a month? Rs 42000
How many children have you? 1 Daughter
How much money do you earn in a month? Rs 21000 (Approx)
Which class is she reading? Class - III
Really, it is very crucial problem like middle class and BPL
What is your view about recent price hike?
family.
Do you think that the sum of money you have spent this year for the
study of your children whether it is increasing or decreasing as compared No doubt, increasing.
to last year?
The amount you save in a month, whether it is increasing or decreasing as
Obviously decreasing.
compared to last year or why?
In modern education system higher study is very important for
What is your view about higher study?
everybody.
Do you want that your child should go for higher study? Yes.
Higher study is only for the children of higher society – is it true or false? False
Talented students below poverty line can acquire higher study
What is your view about the study of talented student living below
with the help of loan facility sponsored by various nationalized
poverty line?
bank.
Do you think that recent price hike is creating a continuous problem for
Yes.
the study of student living below poverty line?

Survey No 4
Name Ratna Gopal Goswami
Age 53 Years
Occupation Teacher
Number of family members 4 no.
How many earning member in your family? 2
What is your wife’s profession? Agency work
How much money is earned by your family in a month? Rs 26000
How many children have you? 2
How much money do you earn in a month? Rs 22000
Which class are they reading? Boy – VII
Girl - IV
What is your view about recent price hike? Hampers family budget.
Do you think that the sum of money you have spent this year Increasing.
for the study of your children whether it is increasing or
decreasing as compared to last year?
The amount you save in a month, whether it is increasing or Decreasing
decreasing as compared to last year or why?
What is your view about higher study? Higher study is essential for all.
Do you want that your children should go for higher study? Yes
Higher study is only for the children of higher society – is it False.
true or false?
What is your view about the study of talented student living Govt. should provide more facility for talented student.
below poverty line?
Do you think that recent price hike is creating a continuous Yes
problem for the study of student living below poverty line?

Survey No 5
Name Anil Ranjan Das
Age 43 Years
Occupation Teaching
Number of family members 06
How many earning member in your family? 01
What is your wife by profession? House wife
How much money is earned by your family in a month? Rs 21000
How many children have you? 1
How much money do you earn in a month? Rs 20000
In which class is he/ she reading? KG - II.
What is your view about recent price hike? In recent price hike only 5% people of country are living
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International Journal of Applied Research

luxurious life. Other 95% people are sufferer, 25% people are
half fed.
Do you think that the sum of money you have spent this year for the study
of your children whether it is increasing or decreasing as compared to last Increasing.
year?
The amount you save in a month, whether it is increasing or decreasing as
Decreasing
compared to last year or why?
If the child has merit the pupil should be given all facilities for
What is your view about higher study?
higher studies.
Do you want that your child/ children should go for higher study? Yes
Higher study is only for the children of higher society – is it true or false? False
What is your view about the study of talented student living below
Student of below poverty line suffers difficulty.
poverty line?
Do you think that recent price hike is creating a continuous problem for
Certainly.
the study of student living below poverty line?

Survey No 6
Name Prasenjit Dey
Age 33 Years
Occupation Teaching (private junior science college)
Number of family members 09
How many earning member in your family? 01
How much money do you earn in a month? Rs 20000 (appx)
What is your view about recent price hike? Uncontrolled policy of our govt.
What is your view about higher study? Higher study is playing a very important role to achieve success in life.
Do you want that your child/ children should go for higher
Those who are interested must go for higher studies.
study?
Higher study is only for the children of higher society – is it true
It is not 100% true
or false?
What is your view about the study of talented student living Non-govt. organization and others should come forward to take this
below poverty line? responsibility.

Survey No 7
Name Chandan Chakraborty
Age 50 Years
Occupation Forester
Number of family members 05
How many earning member in your family? 01
What is your wife’s profession? House wife
How much money earned by your family in a month? Rs 18000
How much money do you earn in a month? Rs 18000
How many children you have? 3
1 Daughter in H.S. 2nd year, another daughter in
Which class they are reading?
Class IX. Boy H.S. 2nd Year
What is your view about recent price hike? Now a days prices of essential things are rising.
Do you think that the sum of money you have spent this year for the study of your
Increasing.
children whether it is increasing or decreasing as compared to last year?
The amount you save in a month, whether it is increasing or decreasing as compared to
Decreasing because expenditure is increasing.
last year or why?
What is your view about higher study? Higher study provides a student a successful life.
Do you want that your child/ children should go for higher study? Yes
Higher study is only for the children of higher society – is it true or false? True.
What is your view about the study of talented student living below poverty line? They have little scope for higher study.
Do you think that recent price hike is creating a continuous problem for the study of
Yes
student living below poverty line?

Survey No 8
Name Bhaba Ranjan Aiash
Age 48 Years
Occupation Central govt. service
Number of family members 04
How many earning member in your family? 01
What is your husband/ wife by profession? house wife
How much money earned by your family in a month? Rs 13000
How many children have you? 02
How much money do you earn in a month? Rs 13000
Which class they are reading? Boy – IX
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International Journal of Applied Research

Girl - VI
What is your view about recent price hike? Justified
Do you think that the sum of money you have spent this year for the study of
Sum of money spent last year is less than this year.
your children whether it is increasing or decreasing as compared to last year?
The amount you save in a month, whether it is increasing or decreasing as
Decreasing due to hike in price rise.
compared to last year or why?
What is your view about higher study? Higher study depends on sufficient earning.
Due to limited earning it is not possible to maintain higher
Do you want that your child/ children should go for higher study?
study.
Higher study is only for the children of higher society – is it true or false? True and some times it is false also.
What is your view about the study of talented student living below poverty Our society should provide more facility for talented
line? student.
Do you think that recent price hike is creating a continuous problem for the
Yes.
study of student living below poverty line?

Survey No 9
Name Anil Das
Age 40 Years
Occupation Fish Seller (Retail)
Number Of Family Members 4 No.
How Many Earning Members Are There In Your Family? Self Only
What Is Your Wife By Profession? House Wife
How Much Money You/ Husband/ Wife Earn In A Month? Rs 4000 (Appx.)
How Much Money Is Needed For Maintaining The Minimum Needs Of Life? Rs 5000 (Appx.)
How Much Money Do You Use For Medical Purpose? Rs 800 (Appx)
What Type Of Help You Get From BPL Card? Rice At Low Rate
Do You Receive The Benefit Of The Card Regularly? All Most Regularly.
Is BPL Card Provide You Any Educational Help? No
How Many Child/ Children You Have? 1 Boy - 6 Months Old
Due To Price Hike The Profit Of Fish Seller (Retailer) Has
What Is Your View About Recent Price Hike?
Been Diminished.

Survey No 10
Name Md. Lutfur Rahman
Age 44 Years
Occupation Daily labour (raj mistri)
Number of family members 04 no.
How many earning member in your family? 01
What is your wife by profession? Housewife
How much money you/ husband/ wife earn in a month? Rs 3000
How much money is needed for maintaining needs of family? Rs 5000 appx.
How much money do you need for medical purpose? In a month Rs 500 -700 appx.
Do u have BPL card? Yes
What type of help you get from BPL card? Rice, sugar, dal, kerosene etc
Do you receive the benefit of the card regularly? Yes
Is BPL card providing you any educational help? No
How many child/ children you have? One son
Which class your child reads? Class – III
What is your view about recent price hike? Difficult to maintain the family.
How much money is needed for providing your son the essential reading articles in a month? Supplied by school at free of cost

Survey No 11
Name Salim Uddin
Age 22 Years
Occupation Mistri helper
Number of family members 4 no.
How many earning member in your family? Self
How much money you earn in a month? Rs 2600
How much money is needed for maintaining your family in a month? Rs 4000
How much money is needed for medical purpose? Rs 700 for father
Do you have BPL card? Yes
What type of help you get from BPL card? Only low rated rice, kerosene, sugar etc
Do you receive the benefit of the card regularly? Almost regularly
Is BPL card providing you any educational help? No
What Do you think about recent price hike? Daily livelihood becomes difficult.

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Survey No 12
Name Immajul Ali
Age 50 Years
Occupation Day labour
Number of family members 5 no.
How many earning member in your family? 01 (self)
What is your husband/ wife by profession? house wife
How much money earned by your family in a month? Rs 2500
How much money is needed for medical purpose? Rs 400 average
Do u have BPL card? Yes
What type of help you get from BPL card? Only low rated rice, kerosene, sugar etc
Do you receive the benefit of the card regularly? Yes
Is BPL card providing you any educational help? No
How many child/ children have you? 3 Children - 2 daughters, 1 son
Which class they are reading? Not yet gone to school
What do you think about recent price hike Price rise is increasing at a high rate.

Survey No 13
Name Satyayendra Deb
Age 50 Years
Occupation Day labour
Number of family members 05
How many earning member in your family? Self
What is your husband/ wife by profession? House wife
How much money is earned by your family in a month? Rs 5000 appx
How much money is needed for maintaining the minimum needs of life? Rs 5000 above
How much money is needed for medical purpose? Rs 1000 average
Do you have BPL card? Yes
What type of help you get from BPL card? Low rated rice, kerosene, sugar etc
Do you receive the benefit of the card regularly? Regularly
Is BPL card providing you any educational help? No
How many child/ children have you? 3 Children - 1 daughter, 2 sons
1st daughter read upto class IX,
Which class they are reading? 1st son reading in class IX,
daughter reading in class VII
How much money is needed for providing your children essential Reading articles are getting free from school. Tuition fee is free,
reading articles in a month? but incapable to provide private tuition.
What do you think about recent price hike? Price rise is increasing at a high rate, difficult to maintain family.

Analysis of Data survey report of 9 and 10, only 10-20% of expenditure are
From the above survey reports it is clearly evident that the required for education purpose and family earners of survey
family earners of survey report 1, 2 and 3 are capable to report of 11 and 12, 13 are unable to bear the expenditure
bear 100% of educational effort that is if, 10000.00 is required for providing education to their children.
needed for providing education to their children they will be This can be shown with the help of following bar diagram.
able to bear the sum very easily and the family earners of In the above figure OX – axis measures family’s total
survey report 4, 5 and 6 are capable of bearing 90-95% of monthly income and OY – measures possible educational
expenditure involved for education and family earners of efforts (in percent). The diagram shows that the capabilities
survey report of 7 and 8 are able to bear about 80-85% of of bearing expenditure of educational purposes fall
educational effort and for the remaining family earners of downwards extremely.

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Fig 5

Major Findings e.g. cloth, food etc. Due to low production supply becomes
It is observed from the above survey report that inflation or less as compared to demand. Due to less supply and more
price hike is closely related with education. In our society demand prices of essential goods is increasing at a high rate
higher class and middle classes may be able to give resulting high rate of inflation.
inspiration to their children for better guidance of education. So, in order to control inflation, the government of India
But adversely the lower class people of society have been should approve the two child norms, take proper steps for
unable to give inspiration to their children due to recent opening of family planning centers throughout the country
price hike or inflation, because price hike has created in order to put severe restrictions on limiting the size of
various hurdles in maintaining their livelihood and they are family.
unable to provide suitable education to their children. Some The govt. should adopt a system of dual price for essential
good students belonging to poor sections of society are commodities so that the weaker sections can get
unable to attain proper guidance and good educational commodities at low cost from fair price shop and the higher
facilities since parents of these students become unable to classes should collect the goods from open market at open
maintain their lively-hood i.e. on other hand the latency of price. Though the govt. introduced fair price shop for
these students are not being enlightened in the society. Thus providing essential goods at low cost but its benefits are
in such a situation it is essential to control inflation so that enjoyed by both rich and poor sections of society.
all sections of society should get the scope of proper Another step to control inflation is that the govt. should take
educational guidance for general and higher education. various measures for strengthening the public distribution
Following are some of the measures to control inflation. system of the country. Public distribution system serves two
purposes - it helps to hold down price, and it provides
Suggestion on the Topic essential commodities to the weaker sections of the society
The first safe guard against inflation is that there must be at relatively low price.
small doses of inflationary finance. At the same time deficit Besides these, for the educational upliftment of the weaker
financing should be moderate and regulated or adjusted sections of society govt. should take proper steps so that the
according to the absorption capacity of the economy and poor talented pupils can be able to get proper teaching from
should not be allowed to exceed the optimum limit which is govt. recognized schools and so there is no need of any
determined by the various social and economic private coaching centers. because with the increase in
circumstances in the country. The use of inflationary finance inflation the tutorial fees are also increasing at rapid rate and
should be strictly followed only for productive use. Quick the weaker sections become unable to bear the expenditure
yielding project must be given top priority. of higher studies in respect of poor talented students, as a
The prices of essential commodities such as food, clothing result the talented students of weaker sections can’t achieve
should be kept under strict control. More over price control success in life.
and rationing may be adhered to.
Special measures must be taken to raise production. Conclusion
Adequate buffer stock of essential articles must be created To conclude the discussion it can be said that some inflation
to meet the scarcities. is bound to occur despite various precautions adopted by the
The most important measure to control inflation is the govt. of underdeveloped countries. But is essential to note
adoption of family planning programme to control that mild degree of inflation is beneficial in every respect
population growth. Increasing population means more e.g. as it generates capital formation, results proper
mouth to feed. But in India now a days with increasing utilization of resources both natural and human. But it must
population, production cannot increase at the same rate. be kept within the absorptive capacity of the economy. It
More population means more demand for essential goods must serve as a tool for economic growth under all means; it

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must be properly regulated and controlled. Further, it should

not be allowed to exceed the optimum limit. Thus judicious
inflation is called forth if properly allocated could yield
significant result. In this way the device of inflationary
finance has got a respectable place in the strategy for
economic development of a developing country like India.

Reference
1. Ahluwalia MS. Economic reforms in India since 1991:
has gradualism worked? Journal of Economic
Perspectives. 2002; 16:67-88.
2. Balakrishna P. Pricing and Inflation in India. Delhi:
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3. Bhattacharya BB, Lodh M. Inflation in India: An
Analytical Survey. Artha Vijnana, 1990; 32:25-68.
4. Izuchukwu CD, Nkiru Patricia C. Impact of inflation on
economic growth in Nigeria (2000-2009). International
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5. Kannan R. Inflation targeting: issues and relevance for
India. Economic and Politic Weekly, 1999;
XXXIV:115-122.
6. Sai Pranav K, Srinivasulu P, Mahaboob Basha AM,
Chenchu Reddy P, Nagabhushana Rao, RVSS. A Study
on Inflation in India. International Research Journal of
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1965; 33:671-684.

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