Inflation surge: who gains and who loses

Reported by – Syed Shifa

Inflation is the measure of the rate of rising prices of goods and services in an economy. Inflation is occurring at higher prices for basic necessities such as food, it can have a negative impact on society.

Inflation can occur in nearly any product or service need-based expenses such as housing, food, medical care, cosmetics, automobiles, and jewellery. Inflation can be a concern because it makes money save today less valuable tomorrow.

Rising prices may be an indication of an economy growing very fast. People buy more than one.

Rising prices may be an indication of an economy growing very fast. People buy more than they need to avoid tomorrow’s higher prices fuel demand for goods and services. Supplies can’t keep up, more importantly, neither can wages. As a result, everyday goods and services are priced out of most people’s reach.

Rising prices may be an indication of an economy growing very fast. People buy more than one.
Inflation is the rate of change in prices, rising inflation means you have to pay more for some goods and services such as housing or stock if you own the assets before price-wise, but if your income doesn’t keep pace with inflation, your power declines. Over time, inflation increases your cost of
living if the inflation rate is high enough it hurts the economy.

Inflation doesn’t affect everything the same way, for example, gas prices could double while your home loses value. That’s what happened during the financial crisis of 2008. Home prices deflated falling nearly 20%. Meanwhile, inflation occurred in oil prices. The reached an all-time high of $128 a barrel in July

Since oil prices influence gas prices, the cost of gas rose above four dollars a gallon in some parts of the United States.

Sometimes inflation is good for the economy when it’s mild, inflation has a healthy side effect once people start to expect inflation, they spend now rather than later because they know prices will be higher in the future. Consumer spending drives economic growth.

As always, poor workers in the informal sector will hit hardest as their ability to bargain for higher wages is relatively weak and they have no resources for any inflation hedge.