Monday, 24 October 2011

Inflation


Inflation is a big problem of developing countries and India is not an exception. In the last decade prices have raised many folds. Inflation hits the poor and the middle class man the hardest. Problem has become more challenging because mostly all essential commodities like food grains, vegetables, fruit, clothes and other daily use items have become costly. Purchasing power of people is decreasing. Demand for goods is decreasing. Hence manufactures are also suffering. Government should intervene before job-cutting starts. It can take form of recession any time which is deteriorating for the economy. Government should create jobs especially in rural regions. It should control prices of essential commodities through public distribution system. In a democratic and poor country it is the duty of government to save the citizens from high inflation.

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