Post
Topic
Board Economics
Re: Inflation overpowers the value of money
by
Sim_card
on 03/08/2023, 04:37:37 UTC
The causes of high inflation can be attributed to the following:
1. Excessive Government borrowing
2. Unwanted and unstable domestic policy
3. Unsatisfiable or lack of domestic production

You left out a very important one: high energy prices, which affect everything. If gasoline and electricity prices go up, you not only pay more to fill up the tank and for the electricity in your house, you will also pay more for groceries, for example.

In fact, the inflation we have been experiencing for a couple of years now is mainly due to energy prices and massive post-covid printing. Then it was exacerbated by the Ukrainian war, but it started earlier.
You are right Poker Player,the high cost of gasoline and electricity will have a big role on inflation and the price of other commodity will be affected too,even the rich will also be affected indirectly when this happens. Take example of my country Nigeria, the new administrative have opened the door of hyper inflation on the citizens by removing fuel subsidy. Ever since that time everything in the country price has shoot up rapidly and the hardship has increased by the poor can no longer fend for themselves neither can they go out to look for their daily bread because of high cost of transport and high cost of living. This has made the Nigeria Labour Congress to embark on a protest to make sure that the new administrative does something to ease the suffering that the removal of fuel subsidy has caused in the country. Inflation is bound to be part of any economy because fiat currency depreciates as time passes on. Hyper inflation is caused by some actions taken by the government.