Question

increase in price how effect poverty​

Answer 1

Answer:

When the country faces inflationary tendencies, the general price level of commodities increases, making the basic or essential commodities unaffordable by a poor section of society mainly because the wages do not increases or catches up with the rising prices due to the stickiness of wages which lowers their

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Answer 2

Answer:

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Explanation:

Inflation increases poverty, the problem of poverty is aggravated when the prices of commodities increase. Inflation is therefore considered as 'cruelest tax 'on the poor. Cardoso (1992) argued that inflation increases poverty in two ways: Inflation tax reduces disposable real income.