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presents Paisa PalsPaisa Pals · Book 2
Why does Kabir's favourite chocolate cost more than last year? Join Srestha Didi and the Paisa Pals as they turn into price detectives, follow three big clues, and find out why prices rise and what families can do about it.
Last year this chocolate was ₹10. Now it's ₹12! Same size, beta. Almost everything costs a little more these days. EVERYTHING?! Milk, rice, oil, soap… Amma, why is our bill bigger than last month? Good question, Riya. Prices keep creeping up. Hello, Kabir! Why the big frown? A mystery, Didi! The Case of the Growing Prices! Wait! My dream bat was ₹1,200 last year. Now it's ₹1,260! Then let's solve this case together!
That evening, at Siddu's house… Grown-ups have a word for this. It's called inflation! Infla-what? Like blowing up a balloon? Exactly like a balloon! When prices of many things puff up slowly over time, we call it inflation. One costlier chocolate isn't inflation. Many things getting costlier together is. So what blows air into the price balloon? Let's be price detectives and find the clues! Case on!
Next morning, at the vegetable market Tomatoes are ₹80 a kilo? Last month they were ₹30! Heavy rain spoiled the crops, Amma. Very few tomatoes reached the market this week. Far away, on the farms… So much rain! Most of my tomatoes are spoiled. Few tomatoes, but just as many people want them. So the price jumps! Everyone wants tomatoes for their sambar! Clue 1: Less stuff, same buyers, and the price goes up!
Three weeks later… Look! Tomatoes are ₹30 again! The new crop has come, beta. Now there are lots of tomatoes! So some prices go up AND come back down! Yes! Food prices jump up and down with the weather. But Siddu's bat price never came back down! Right, Joel. Many prices keep rising year after year. Let's find the next clue!
Welcome back, kids! Buns are ₹12 now. Not you too, Vikram Uncle! Flour, sugar, milk and gas all cost more this year. And Meena Akka works so hard. She deserves a pay rise too! Thank you, Sir! So when making something costs more, its price goes up too. That's fair. Vikram Uncle has bills to pay! Clue 2: When costs go up, prices go up. (mouth full) Still worth it!
My shop rent went up. The truck driver charges more. Even my electricity bill grew! From farm to shop, every step adds a little cost. It's like a relay race! Every runner adds a little to the price. Can't you just keep your prices the same, Mahendra Bhai? Then I'd lose money, beta, and have to close my shop! Shops must cover their costs to stay open. So that's why prices creep up. But there's one more clue, right?
Imagine a school fair… There is only ONE special bat. Let's bid with our pocket money! ₹500! ₹600! Now imagine everyone's pocket money suddenly doubles! TING! ₹1,000! ₹1,200! ₹1,300! Same bat, more money chasing it, so the price shoots up! Clue 3: More money, same things, higher prices!
Easy fix! The RBI should print lots of money and give everyone some! Then everyone has more money, but the same number of chocolates… …so chocolate prices go up again. Oh no! So printing extra money doesn't make people richer. It just makes prices bigger! Remember the RBI, the principal of all banks? It also checks the temperature of prices! The RBI tries to keep price rise gentle, about ₹4 for every ₹100 in a year. Not zero? A little rise is normal when a country grows.
At the bank When prices rise too fast, the RBI can make loans costlier. Then people borrow less and spend less? Yes! Fewer people rush to buy, so prices calm down. And when things are too slow? Then loans can become cheaper, so families buy and businesses grow. Like a fan regulator! Turn it down when it's too fast, up when it's too slow.
Didi, who checks if prices are rising all over India? A government team of price detectives! Every month, they check prices of hundreds of things families buy, in villages and cities. Not just food? Even bus tickets, school bags and haircuts? Yes! They put it all in one giant basket and see how its price changes. Oh! That's the inflation number they show on the news! The price of the giant basket!
Hi, gang! Remember me? I'm Sau, still worth ₹100. Sau! Many years ago Back then, I could fill a big bag! Today Today, the same ₹100 fills a much smaller bag. Poor Sau! Are you shrinking? No! I'm the same note. Things just cost more. That's inflation. The same money buys a little less each year. So money slowly loses power, like a phone battery!
When I was your age, a plate of idli cost less than one rupee! LESS than one rupee?! I'd eat a hundred plates! Long, long ago… But Ajja's first salary was only a few hundred rupees a month! True! Prices went up, but so did our pay. So it's okay if prices AND pay go up together? Yes. It's hard when prices run faster than pay.
So is inflation good or bad, Didi? A little, steady price rise is normal. It often comes with a growing country. But when prices rise too fast, families struggle. Their money buys much less. It's hardest for people whose pay doesn't go up. Just like my tea. Not too hot, not too cold! Just right!
My ₹1,000 earned ₹30 interest this year. Yay! But your bat's price went up by ₹60! Hey! The bat is running faster than my money! That's why grown-ups try to grow their savings faster than prices rise. Different savings grow at different speeds. Grown-ups compare carefully and plan. Run, money, run!
We make a shopping list before we go, and we stick to it. We compare prices, and buy fruits and vegetables when they are in season. And we don't waste food. Wasted food is wasted money! I wait one week before buying something I want. Usually I forget I wanted it! Smart family! Needs first, wants later.
Why do prices rise? Let's read our three clues! 1. Less stuff to buy. 2. Making things costs more. 3. More money chasing the same things. Case closed! Okay, ₹12. But I'm sharing half with Sau! Aww, thank you! Squeak?! Cheese costs MORE? See you in Book 3, Paisa Pals!
Answers: 1-a 2-b 3-a 4-b 5-c 6-b
Draw a line from each clue to what happens next.
| What happened | What happens to the price |
|---|---|
| Heavy rain spoils the tomato crop | Buns cost more |
| A new tomato crop arrives | The bat at the fair costs more |
| Flour and gas cost more | The RBI makes loans costlier |
| Everyone gets double pocket money | Tomato prices go up |
| Prices rise too fast | Tomato prices come down |
What inflation is, three common reasons prices rise, how weather affects food prices, why printing extra money does not make people richer, how the RBI keeps watch over prices, and simple ways a family can manage rising prices.
Paisa Pals is created by Srinivas Kambhampati, AMFI-registered Mutual Fund Distributor (ARN-265474, EUIN E091320), working under the brand Rytvae Consulting. This book is for financial awareness only. It does not recommend any bank, product, investment or scheme. More free comics: rytvae.com (Kids' Corner).
What’s next?
ComicBook 1
Why do we need banks?
Saving money in a shoebox — what could go wrong? Plenty! Join Srestha and her friends as they find out how banks began, how they keep our money safe, what happens to the money we deposit, and why every family needs a bank.
Coming soon
The Paisa Pals are busy cooking up their next money adventure. Check back soon for a brand-new comic to read!
Coming soon
The Paisa Pals have more money adventures on the way. Check back soon for new comics to read!
