Students can go through AP State Board 9th Class Social Studies Notes Chapter 10 Prices and Cost of Living to understand and remember the concept easily.
AP State Board Syllabus 9th Class Social Studies Notes Chapter 10 Prices and Cost of Living
→ Every family makes a budget The balancing of expenditure to income is called a budget They reduce their expenditure in order to adjust their budget
→ Not everyone is affected by prices. Not all working people get compensated easily.
→ Continuous rise in prices of goods is known as inflation.
→ Change in price is measured with the help of a statistical device known as a price index.
→ Price Index numbers are of different types. We have the Wholesale Price Index (WPI) and the Consumer Price Index. In India, different CPIs are published by the government
→ CPIs are used to calculated DA (Dearness Allowance) to be paid for government employees, to revise legal wages, etc.
→ WPIs are helpful in calculating the rates of inflation.
→ The government generally regulates prices through Administrative Price Mechanisms. Sometimes subsidies are given to regulate the prices.
→ The Reserve Bank of India which is an apex body reduces the money in circulation to control inflation.
→ Standard of living Quality of life that people lead in terms of goods and services is the standard of living of the people.
→ Inflation: Inflation means a general increase in the price levels and a gradual decrease in the value of money.
→ Consumer Price Index: Changes in the prices of the selected consumer goods at retail price in a statistical form are called Consumer Price Index.
→ Wholesale Price Index: A statistical measure used to measure the change ¡n the prices of all goods in their wholesale rates.
→ Administrative Price Mechanism: It is a system where prices are regularised by the governments
→ Food Inflation: Since 2009, the government began to estimate a new index – The Food Price Index (FPI). This index is used to estimate the rise in prices of food items called food inflation. The FPI consists wholesale price of food materials such as rice, wheat, pulses, vegetables, sugar, milk, eggs, meat, fish, and manufactured food materials such as edible oils. In 2011-12, edible oils accounted for higher food inflation. During that year, about 50 percent of India’s edible oil requirements were met through imports of crude palm oil sunflower oil, soyabean oil, and refined palm olein. When the price of these items increased at the international level – in other countries from where we import, Indian consumers also had to pay higher prices.
→ Since then the government has to take measures to control the rising prices, many research studies were conducted. It was found that the change in the dietary pattern of people has changed considerably in such a manner that their consumption of vegetables, eggs, meat, and fish increased recently. Any seasonal shortage causes a price rise since the demand for these products is quite high. People wish to consume them even at a higher cost. It has become a part of the regular diet.