Why the prices of essential commodities are rising rapidly, and how it will impact the consumer side | SBI PO Prelims & Mains Preparation - Bank Exams PDF Download

Why the prices of essential commodities are rising rapidly, and how it will impact the consumer side.

Inflation is the phrase used to describe the increase in prices of basic goods. It makes life difficult for the economically vulnerable group. Other than political party shifts, external factors like product exports and commodity hoarding may contribute to inflation. It increases the danger to the nation's economic growth. Increased food security and undernourishment in some low-income nations are serious hazards that a rise in food costs could bring about. Price rise affects different people differently.Although it may not have much affect on the flexible income group.In order to curb the problem of price rise it should be the joint effort of the government and the public control it.The government and banks must keep a check on hoarding and black market ting and also stop payment of public debt until price rise is controlled within the economy.
In terms of the general people, they must raise savings and decrease wasteful spending. Due to this, fewer people will have disposable income, which will result in lower personal consumption expenses. In conclusion ,It is evident that price rise is a multi headed topic,which must be defeated on time with proper measures to benefit not just the rich population,but the poor also.
Economists have pointed out that factors such as consumer spending,public expenditure,black money, etc are exceeding demand. So the government and people are responsible for keeping the price rise under control.