There have been several school of thought and research on this subject of Inflation. The world in general has witnessed a dramatic change especially within this year of 2022 in human history, with several challenges on its economic growth and other areas of life.
Come with me as I discuss this subject with a few points of mine and see whether you are affected in any way.
WHAT IS INFLATION?
Inflation is the increase and high rate of goods, services and cost of living in any given economy. As the prices goes up climbing the ladder, few people only can have the money to buy little goods or obtain certain services. In a nutshell Inflation equals a reduction in what money can buy.
Generally inflation has changed the way people live their lives and in a wider scale those affected are really finding it difficult to cope.
There are majorly 3 factors that causes inflation - Demand, Cost, Inflation Expectations.
When people demand something and the supply is limited then the cost will be out of hand, balancing both becomes very difficult thereby leading to a shoot-up in price.
EFFECTS OF INFLATION
Countries affected faces inflation in different ways. For instance in Nigeria where I live, the cost of living now as I write this article is very high. Prices of Goods of all kinds are now on top of the ladder. There is no longer an average person because money is difficult to come by. Available food stuffs are very expensive. Most families cannot meet up again with 3 square meals a day. The problem is really tense.
Food Items and other stuffs in the market
Some few years ago, an average Nigerian can live comfortably with N100,000 with his family. But now the reverse is the case. Feeding is the worst aspect that many face. Those with low income and fixed salary often feel the pinch as it bites very hard on them. It has become very tough to meet up with food and electricity with no meeting ends.
ECONOMIC GROWTH
As Inflation becomes very common, the Federal Government is tightening the money policy, borrowing money especially from the bank is more expensive due to interest rate soaring up.
The economic problems are of great benefit to some. As some are losing, others are gaining making huge profits. But often it's a vicious cycle since those smiling are still buying food and other basic necessities of life.
Consumers facing high prices of goods feel the pain in their wallets. They think twice before buying anything.
Salary earners and Retirees with fixed income are making a lot of sacrifices in other not be adversely affected on their quality of life.
ARE THERE SOLUTIONS?
Like in Nigeria, the Federal Government has adopted various measures both monetary and fiscal policies to reduce and manage inflation growth to an acceptable level but yet it has not fully solved the problem.
Those still having money are making more purchases to take advantage of the future hike in price. Money lost value.
In a nutshell, it's still the Federal Government that will fix the problem. They can raise interest rates, increasing taxes or cutting spending.
Other strategies could be fixing exchange rate, checking closely how money is being used and targeting the major areas that inflation is affecting the society.
CONCLUSION:
Coping with Inflation is not a small problem. Each country has to apply suitable measures to be able to solve this issue as they are being affected, in order to help its citizens meet their basic needs.
Thanks for reading and following me to the end.
Cost of living is not only in Nigeria now. It's a global pandemic hahahaha. Pardon me for using that word. And we can't do anything about it unless the Almighty God
My dear you are very correct, it's affecting every Dick and Harry
So, when last did you exercise
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Thanks so much, I look forward to doing more.
You are welcome @essygold1! It is great to see you are doing your first steps! Great work!