Post
Topic
Board Economics
Re: Food prices doubled this year
by
Findingnemo
on 24/09/2020, 17:09:17 UTC
Have you heard the term Inflation before? It simple means more money has been printed every year while adds more in the circulating supply as a result of this the purchasing power of your money is going down every year.

I dont think so. Inflation occurs when there is too much money in supply than the goods.  The reason for the current increase in food prices is not the government's printing of money.  In my country, there is no money printing policy, but food prices have increased by a few percent, although not double.  This is because the availability of foodstuffs cannot fulfill the needs of the entire society so that it increases.
So basically your country is not printing any money? I guess this can't be true.Every country prints money but if it is printed in very less percentage then it may do some good stuffs but no country is having such strong economy now.

If there is high demand for food products in your country and your money didn't lose the purchasing power then your country can simply import food products from other countries so people can get for cheaper prices.