Question

essay on rising inflatation and its effect on people

Answer 1

Answer:

• Inflation can be defined as the rise in the overall price level in the economy for example rise in the price of overall goods and services.

• When the price of the commodity rises it decreases the purchasing power of the common man.

• The most effect of inflation in the world economy is seen in the price of fuel hike which directly affects the common people because now they have to pay more for the fuel.

• Another impact of inflation on the common man's life is food price hike, in times of inflation commodity price increased and this increase the cost of living of the common man.

• Inflation creates disincentives to save money, people now spending more money on the basic commodities because of increasing prices.