Basically, No, Inflation do not steal your money, literally. But, Yes, it steals value from your money. "Inflation is when your money worth less over time." •Inflation is the hot topic everyone is talking about right now. •Inflation steals your money by making your currency hold less value. •Simply it means, the money is devalued, with goods and services going up over time. Let us understand it using few examples: •Example 1: A litre of toned milk used to cost ₹25 in the year 2010. Now the same litre of toned milk costs ₹45 in 2020. The milk has become costlier. With the same ₹25, one can get only half a litre of milk in 2020. This is called the falling purchasing power of the currency. •Example 2: If ₹5000 kept under your bed today is worth more than it is tomorrow. This will not steal your money but the purchasing power of the same ₹5,000 10 years later is less. This is how inflation steals value from your money/wealth. #Facts: •COVID and even the Russia-Ukraine war have taken a back seat as people all around the world struggle to adjust to the rising cost of living. •The entire world we know today is based on an inflationary system. •Economists justify Inflation as part of their role as overseers of the economy to keep the money flowing. •The modern monetary theory argues that governments should be allowed to print as much money as they need to remain solvent.

On Wednesday, the rupee hit a record low of 79.03 against the US dollar. It has also declined nearly 6 per cent since January this year. • The value of the Indian rupee to the US Dollar works on a demand and supply basis. • If there is a higher demand for the US Dollar, the value of the Indian rupee depreciates and vice-versa. There are 'n' number of reasons such as: 1) Inflation Prolonged 2) COVID-19 lockdowns in China. 3) Capital Outflow 4) Due to high crude oil prices. 5) Supply chain disruptions caused by the Russia-Ukraine war. 6) If a country imports more than it exports, then the demand for the dollar will be higher. 7) The US Federal Reserve recently increased the interest rates. How does it impact? 1) India mostly depends on imports and make payments to the US but if the rupee is weak, India has to pay more for the same quantity of products. 2) In these cases, the cost of production goes up which impact the cosumers to pay higher price. 3) The falling rupee's biggest impact is on inflation. 4) High oil prices and a weaker rupee will only add to inflationary pressures in the economy. Will the RBI intervene further? • There are chances that the central bank may intervene further as the rupee sees a further decline. • Last week, RBI Deputy Governor, Michael D Patra said "We will stand for its stability and we are doing it. We are there in the market and we will not allow disorderly movement of the rupee. We have no level in mind, but we will not allow jerky movement. That is for certain". Measures to improve value of ₹: 1)Increase FDI cap in defense, insurance, railways and other sectors. 2) Lure the foreign investors by making business friendly policies and by offering incentives for investment. 3) Curb the demand of gold by hiking import duty on gold and other jewelry items. 4) Boost the tourism industry as it would bring dollars into the Indian market. 5) Retrospective taxation issues needs to be resolved (Vodafone case). 6) Simplify the tax structure. 7) Labor laws needs to be modified: Allow late night shifts for women, rationalize working hour restrictions. 8) When rupee is low against dollar, Indian products become more competitive in the global market. Capitalize those situations by promoting exports. 9) NRI citizens can play a role by pumping in foreign remittances when rupee is distressed.