Rising Prices/ Inflation

Inflation is an economic form that means a constant increase in the supply of money. When the central bank expands the supply of many or money in circulation, inflation takes place. It also occurs when there is more demand for goods than the supply of goods. In simple terms, the process of raising prices is known as inflation.

Inflation is one of the major problems of the world. It is becoming more serious day by day. Pakistan is a developing country. Most of the people are poor here, they have a low income and there are some salaried persons with fixed incomes. Therefore, they are badly hit by the rising prices of commodities. The prices of goods and commodities are increasing every day.

Inflation gives rise to some malpractices in society. The people who are unable to meet expenditures are compelled to adopt unfair means to earn money. They become robbers, dacoits, thieves, and pickpockets. Government officials start bribery and misuse of their powers. Growing social and political evils like bribery hoarding, tax evasion, smuggling, etc are due to inflation.

There are many causes of inflation. The faulty economic policy of the government is one of the major causes of inflation. The supply of money in circulation increases, but the supply of goods and services remains the same. This results in rising in prices. The inflow of foreign aid also increases the prices. Rapid population growth also causes inflation with an increase, but the supply of goods remains the same. This also increases prices. Low production also causes inflation. Because goods are not supplied according to demand, it also results in inflation.

To check inflation, solid steps need to be taken. Government should cut short the non-developmental expenditure. The population growth rate should be checked and more industries should be established.