ESSAY WRITING : INFLATION

OR

RISING OF PRICES

" THE RISING OF PRICESI N THE SETTING OF THE SUN OF LIFE FOR THE POOR MAN "

Inflation means a general increase in price and fall in the purchasing value of money .Inflation is a
situation of a sustained increase in the general price level in an economy.In other words , it means an
increase in the cost of living as thre price of goods services rise.Inflation is a broad, variable and complex
term.

Inflation is not an unexpectedand unpredictable phenomenon .Its seeds are sown because of
mismangement , weak or ;low market knowledge , indifferent attitude towards ecnomic indicators weak
administrative m,achinery absence or lack of cheek and balance , bureaucratic manipulation .
Disturbance in demand and supply ratio is yet another factor.

"Inflation takes up the poverty line."

There are many factors which cause a rise in prices.

First, the most important reason is the increase in population. The population of a country is increasing
rapidly. But the economic resources do not increase at the same rate. It results in inflation.

Secondly,if the demand is higher than the supply, the goods will be naturally , sold at higher prices .
Sometimes the government imposes the higher taxes on certain commedities so that their prices go
up.The wrong policies of government often leads to hoarding smuggling and black marketing of the
essential goods

Third,if a bussiness man has a monoply in the production andsale of a certain commodity he can raise its
price when he desires