”Contest| The Effect of Rising Inflation on Everyday Life

Good day distinguish steemians, I am so delighted today to join this life touching contest with topic, " The Effects Of Rising Inflation On Everyday Life"

I want to ponder and pour out my views on the topic of this contest but first I would love to give credit and as well appreciate the host of this amazing contest for seemingly bringing out such an intriguing topic in person of @deepak94, I must commend and applaud him.
Before going to the the effects of rising inflation, let's get to know what inflation really means first. We cannot have the effects of something if we don't even know the cause of the effects in question. So I will try as much as I can to break down inflation to clear terms so we can all know, know, learn and be conscious of it.

Inflation in a clear term refers to the gradual increase in prices of goods, products and services faced by individuals, society, state, nation and even an economic entity over a period of time.
Inflation can be proven and determined mathematically as a measure of an annual percentage increase in the "consumer price index (CPI)". This means measures Inflation by tracking the prices of good, products and services. Other inflation measuring tools includes; GDP deflation and producer price index.

We have four main types of inflation which are illustrated below ;

1. Creeping inflation: As the name implies, this type of inflation works according to it name. It happens gradually until it becomes unbearable for healthy living.
2. Galloping inflation: This type of inflation occurs a little bit faster that the creeping inflation
3. Hyperinflation: This types of inflation occurs at an extreme fast rate compared to creeping and galloping inflation
4. Stagflation: This type of inflation commemorates both bad governance, stagnant economy and hike in price(i.e Inflation itself)

There are so many causes of inflation both individualized and otherwise. For the purpose of this contest I will try to limit to a certain level. Below are some causes of inflation

1. Demand pull: when there is massive and excessive consumption of good and service usually caused by over population and fast economic growth, inflation is bound to set in.

2. Cost push: when there is maximization in the cost of production which can be influenced by hike in prices of raw production materials can pave a bulky path for inflation

3. Bad governance: This is one of the major cause of inflation.
   
   
   In a situation were those in governmental power and positions cannot manage a country's and her citizens economy, inflation occurs exposing the citizens to hardship, suffering, death and poverty

4. monetory policy: Simple mistakes made by central banks like increase in money supply coupled with printing more money can instigate inflation

5. Supply chain disruption: Poor roads, broken pipelines, poorly maintained vehicles, global and natural disasters can inflict inflation.

Now, we have reached the main concern of this contest so let's get to it

We have lots of positive and negative effects bombarding around inflation. There's nothing with advantages that does not have disadvantages, and is it with inflation. I will try as much as I can to elaborate on the few I will be able to write on. Below are a few inclusive effects;

Negative Effects

1. Reduction in purchasing power: When there is hike in prices of goods it will lead to a decrease in demand thereby resulting to reduced purchasing power.

2. Uncertainty: Inflation shatters the plans of individuals and business owners from making long term plans or making long term investment due to fear for loss.

3. Inequality: Inflation catalyse a feature of capitalism which says that "the rich will become richer while the poor will be poorer" which does not favour the masses.
   
   

4. Increase in cost of living: Inflation leads to increase in prices of goods and this will lead to the increase in cost of living thereby making life unbearable for others.

5. Economic instability: Inflation also leads to downturns in a country's economy thereby rendering that country to recession.

Positive Effects

1. Increased wages: It can influence competition in the path of employers as they will be competing for the highest pay to their workers which will inturn favour the employees to get jobs easily and also get well paid for the jobs they offer

2. Economic growth: Inflation also help to grow an economy

Inflation has created lots of impact in my life. Nigeria my country is currently undergoing inflation so with that I can attest to it. It has impacted me both positively and negatively. These are some of it impacts on me:

1. Increase in debt burden
2. Reduction in my purchasing power
3. Inequality
4. Economic instability
5. Inconvenience
6. High cost of living
7. Reduction in my savings
8. Food insecurities
9. Difficulty in shelter affordability

The main set of people or body responsible for inflation control are the government bodies and the central bank as well in which if they lead selflessly keeping the rights and previledges of citizens first, they may be an easy control of inflation.


Use some preventive tools such as monetary policy, fiscal policy and price controls to minimize the rise of inflation in the nation.

Though inflation has both positive and negative sides, the negative aspects are more tedious thereby making life unbearable. Therefore the government should strive to practice abstinence and try as much as they can to prevent inflation from arising in a country, for the safety of her citizens.

I invite @basil20, @bossj23 and @nsijoro to participate in this intriguing and life changing contest

Do have a great day and thank you for your time, I'm grateful