Easy Essay On Inflation

( words)
OUTLINES:

• INTRODUCTION
• LEADING CAUSES OF INFLATION
• FRAGILE ECONOMIC POLICES
• HOARDING, DISHONEST ATTITUDE OF TRADERS
• STEPS TO CHECK INFLATION
• CONCLUSION

Inflation refers to a continuous, general increase in the price of goods and services. Rise in prices is called inflation. Inflation at very fast rate is Hyper-Inflation, medium is Strato-Inflation and low lever is Creeping inflation. During the recent years the rise has abnormal and it has endangered the stability of our economy nationally and individually. In Pakistan inflation has become an
unending disease to our economy. Once a state is caught in the circle of inflation then it will be difficult for that state to get rid of it.

There are various factors that contribute to the rise in prices. Some are natural factors like unfavorable weather conditions which affect the food production and lead to the shortage of commodities in the market. With more money chasing fewer goods, the prices take to the wings. Besides this natural problem there are man-made problems like hoarding which contribute to the rapid increase in prices. The trading community which senses a shorting of certain commodities, especially the essential commodities, they resort to large scale hoarding. They release the hoarding products after increase in the prices and make a neat margin over
their investment in the hoarded products. They get so much profit but it waters inflation.

The rise of prices in Pakistan can also be attribute to the despicable acts of traders. Their only motive is to get maximum profit and so they try to charge lots of money from the customers as much as possible. This has created a class of people who are becoming richer day by day and the other class is becoming poorer. Hoarding is also playing a bad role in escalation of prices in the commodities

One of the most important reasons for inflation is the deficit budgeting. In order to cover the gap Pakistan has been printing more paper currency because foreign aid and taxes can not cover up the deficit. Therefore there will be greater circulation of paper money. There will be hike in prices of domestic used products as the purchasing power of the people has increased. Wrong taxation policy has also been responsible for the rise in prices. The hike in taxes results in greater desire to avoid taxes. Thus public takes wrong way of not paying taxes and there will be escalation in prices.

Pakistan’s government has been making a great effort to check this inflation. The rate of interests has been increased in order to encourage savings and withdraw of currency. The government is making efforts to increase industrial outputs so that the level of consumption is leveled with that of output. But unfortunately the government has not met
with success in getting rid of inflation.

The rise in prices goes non-stopped, some suggest that there should be demonetization of currency, but the government
thinks that it is an irregular method and will create doubts in the minds of the public about the stability of the government. The rise in the prices of petrol has affected the prices in our country. Pakistan is not producing more than 20% of its total requirement of oil. So we have to import a huge amount of oil every year. Moreover no step has been taken against the traders who are
mainly responsible for unreasonable rise in the prices.

 BY:

SANJRAN GICHKI

Essay on Inflation | Rising Prices Essay with Outline for Matric, FA, FSC, 2nd Year, BA and BSC (Price Hike)

Here is an essay on Inflation with Outline for students. The same essay could be written under the title Essay on Rising of Prices. Inflation essay is with an outline for Class 10, Class 12 and graduation. In this essay, we will discuss the Reasons of inflation and will end up with the solutions.

Essay on Rising of Prices | Inflation Essay with Outline for Class 10, Class 12 and Graduation

• Introduction
• Problem of inflation in Pakistan
• Effect of rising prices on the life of common man
• Reasons behind the inflation
• Solutions

The prices of necessities of life are rising constantly. They are posing a serious problem for everybody in the country. The problem of rising prices has become a universal problem. This problem assumes an acute term in the developing countries like Pakistan. The majority of people in our country belong to the low-income group. Usually, they have very meagre sources of income. Very often the income of people is fixed. Therefore, they are hard hit by the high prices of essential goods which register a rise every week and every month. The result is that the standard of living of the poor people is dwindling day by day.

Inflation has an adverse effect on different sections of society. Most of the people have not sufficient means to buy the necessities of life. They are compelled to use unfair means to have them. In this way, the society is troubled by pick-pockets, thieves and robbers etc. Those government servants who cannot make both ends meet become corrupt. They abuse their powers and accept the bribe. In this way, they promote injustice and cruelty in the national life.

Rising prices also affect national life in the economic field. The businessmen think of adulteration black marketing and other methods to maximise their profits. Since the prices of goods are beyond the reach of common man, the standard of living goes on falling gradually.

There are many factors which cause the rise in prices.

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

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

Third, if a businessman has a monopoly in the production and sale of a certain commodity, he can raise its price as and when he desires. In developing countries like Pakistan, the developmental activities usually cause inflation. The funds and the loans that are acquired from foreign countries are invested on different projects. They increase the circulation of money in the country and cause inflation.

Our first duty should be to check the birth rate. We should make a vigorous propaganda in favour of family planning. Second, the government should not impose so many taxes, levies, duties or surcharges on those commodities which are used by the common man and which are considered necessary for human life.

After this essay on Inflation, go for Poverty in Pakistan essay.