Inflation is defined as the increase in the prices of goods and services in the economy or we can state that continuous decrease in the purchasing power of currency by the time.
Challenges due to inflation.
Inflation is considered to be a major issue nowadays, specially in pandemic it has reached its heights by making difficult for common people to survive in society. Every single day they are forcing themselves to work and support their family but in spite of all the hardworking days, they are unable to collect the required amount of errands to run their lives.
Inflation occurs due to various reasons one of them is the urgent needs of people for goods and services, due to which demand for the same increases at a higher rate, which is responsible for increment in the prices for that goods or services. As in pandemic everyone was rushing towards hospital for testing, medication, check-ups, beds, oxygen cylinder etc. Due to this immediate increase in demand there was a direct affect on the costs of the services. Which ultimately leads to increase in inflation in the economy.
Considering the major change in the prices of petrol and diesel, we can’t blame demand for the inflation. This is probably because of the urgent needs of the government to make other services or facilities available for the people or to strengthen the Healthcare industry of our country. As a community member we have faced the hardest time during the pandemic where millions of people lost their lives fighting with the variants of covid-19. In this tough time our government has spent a lot to balance the situation in economy, in order to meet urgent needs of equipment, vaccine and oxygen cylinder. This whole situation has affected the production of various products. To bring back the lost amount or to strengthen the economy prices of other products have been raised by the government of India.
Inflation has it’s own positive and negative effect, but most importantly handling and managing the circumstances accordingly makes all the difference. If government has taken the essential and crucial steps earlier in this direction by making or saving funds for such circumstances, then the situation might be different.