What is inflation?
Inflation is a state of the country's economy in which there is a tendency to increase prices and services in the long term.
What are some examples of inflation?
In accordance with the previous explanation of plengdut.com that inflation is a process of increasing prices in general and continuously in connection with market mechanisms that are influenced by many factors. So to see the state of a country is experiencing inflation, namely by observing several factors, for example, such as an increase in public consumption, excess liquidity in the market that triggers consumption or even speculation, to the uneven distribution of goods.
What causes inflation?
Inflation occurs because of the emergence of excessive desire from a group of people who want to take advantage of more goods and services available in the market. Because the desire is too excessive, demand increases, while supply remains constant which ultimately causes prices to rise. Or it can be said that there is an unbalanced flow between money and goods.
What is the impact of inflation?One example of the impact of high inflation will cause the real income of the community to continue to fall so that the standard of living of the community drops and ultimately makes everyone, especially the poor, become poorer. If this situation is not handled quickly, it will cause new problems such as social inequality to starvation and even riots and looting. |
