The inflation problem has been an irrecoverable hassle for a country like India. Prices of daily commodities, especially food, always show the first sign of the price distortion.
A common man’s daily struggle with rising grocery price is no new thing. How inflation affects our country? What are your daily expenses?
Food and commuting expenses, right? Apart from that, you may like to go for occasional outdoor dining, shopping, outing and movies in the multiplexes. Unfortunately, inflation hit all these aspects so hard that you may’ve to drop some of your plans from the list to accommodate the extra hike in the price.
So far it’s clear that inflation hit the purchasing power of the common men because they’ve to accommodate their expenses within the affordable monthly budget. This is why we immediately reduce our household and luxury expenses. When the country’s economy faces the biggest challenge of inflation?
Industries suffer a lot due to inflation. As people don’t prefer to spend money on heavy priced goods and services, heavy engineering industries, like automobile, feel the hardest strike. People think instead of spending money on something which is not so necessary, saving the bucks is a wise choice to backup their future. Inflation has been an unmanageable issue in India all the time. It’s impact has been relentless hurting the daily life of the middle class people.
Increased petroleum price has been another severe effect of inflation. The increase in the fuel price affects the transportation cost of goods and services. This is how grocery and vegetable sellers find out another reason to dig a hole in the pocket of the consumers. Again, commodity hoarding has been another major reason of inflation in India.
The commodity wholesale dealers try to create a supply scarcity and dwindle the supply of goods illegally, which further increases the price of essential commodities like rice and grains. Furthermore, inflation also affects the currency exchange rate. RBI often tries to control inflation by increasing the rate of interest on the house loan and consumer loans. People with fixed earning sources are definitely the biggest sufferers of inflation.