Price increase is defined as the percentage of increase in the cost of goods and services. If the cost of an article increases by five percent, it means that the cost of the item is five percent more than its previous value.
Essay on price rise (200 words)
Price increases are a common phenomenon and occur in most economies. This is also a reality in India. However, this reality is not only due to the natural progress of economics, but also due to government policies and taxation, all of which contribute to the price of goods and services that eventually reach the common man.
Price rise and common man:
For the common man, the rise in prices is always of some concern. He has to constantly redirect to his monthly budget and even quit using certain products and services because he can no longer afford them. Add to this the fact that salary does not increase at a normal rate and the common man’s ability to bear many things is greatly reduced.
It is also a matter of concern that when the price of some goods is increased, the prices of other essential goods and services also increase. For example, if the price of petrol or diesel is increased, the common man will have to adjust it in his budget.
But this increase in prices also means increased prices for public transport and goods that are transported across the country using petrol or diesel fueled transport. In other words, as the price of petrol increases, the price of vegetables and grains can also increase.
For the common man, a price increase in a particular item can affect his entire budget and cut his savings. It is up to the government to control the price rise so that the situation is not unbearable for ordinary citizens.
Essay on price rise (250 words)
When prices of goods and commodities rise in a continuous manner over time, the phenomenon is called inflation. It is measured in terms of the annual percentage change in the price index, which is normally the consumer price index. In simple words, inflation means that your purchasing power decreases and not a single rupee goes as much as it used to. Therefore, when the value of money decreases and prices rise, it means inflation.
Inflation due to rising prices:
Although academics and economists have not agreed on a particular theory about the cause of inflation, they generally agree that some factors are to blame.
Demand pull inflation – as the name suggests, this happens when demand exceeds supply. Demand for products and services has increased and prices rise due to this increased demand. The phenomenon is commonly seen in economies that are experiencing rapid growth
Cost push inflation – This comes from the supply side. When a company’s cost of production rises, it compensates by increasing the prices of its goods and services, so that it can maintain its profit margin. Production costs can go up as raw material costs rise or due to taxation or an increase in wages to their workers.
Monetary inflation – According to this theory, when money is monitored in an economy, inflation occurs. Since money is governed by supply and demand, circulating too much money reduces its value and, therefore, increases prices.
People are directly affected by inflation. What they fail to see, however, is that inflation is essential to the economy and sometimes beneficial. They should focus on demanding that wages rise as inflation increases, so that their purchasing power is not negatively affected. Inflation by itself is not only bad or good; The type of economy and the people’s own circumstances determine whether it is profitable or not.
Essay on inflation, Essay on Rising Prices in hindi (300 words)
As a developing country with the second largest population in the world, India faces considerable challenges. One of these prices is rising and is by far the most immediate problem. Because a large part of the Indian population lives below or below the poverty line, this issue affects them severely. In addition, the middle class is also facing more problems due to rising prices.
What is the effect of rising prices?
It has been commonly held that price increases are a normal part of a growing economy. This is true to some extent. However, prices have seen a spurt in recent years – the increase is affecting Indians who were already at subsistence levels. The number of people living below the poverty line is actually increasing rather than decreasing.
Another section of society affected by rising prices is the middle class. A strong section of the society, the middle class, is now struggling to fulfill itself. These are people who earn a fixed income; They are the salaried class. Unfortunately, their salaries are unable to keep up with the continued rise in prices of essential commodities and commodities. As a result, the gap between lust and lust increases day by day.
Whenever such a situation persists for some time, unrest is inevitable. As wage earners find themselves facing problematic price increases, they start agitating against their employers. This, in turn, leads to stagnation in productivity, leading to shortage of goods and increase in prices. The whole thing becomes a vicious cycle.
While price increases are inevitable in any economy, uncontrolled or badly controlled growth hits a country’s population hard and widens the gap between rich and poor. They lower the standard of living and cause widespread unrest. In order to have a stable and prosperous society, it is necessary for those powers to exercise some measure of control over price increases.
Essay on price rise, Essay on Price Hike in hindi (400 words)
In India, some goods are classified as essential goods according to the Essential Commodities Act 1955. These items include but are not limited to oil cakes, animal feed, automobile components, coal, certain medicines, woolen and cotton textiles, edible oils. , Products made from steel and iron, steel and iron, petroleum and its products, paper, food crops, and raw cotton.
These goods are essential to both the country’s population and its economy. Therefore, any shortfall can result in higher prices early.
Rising prices of essential commodities:
In the last few years, the price increase in these essential commodities has been seen from 72 percent to 158 percent. Price increases are caused by both demand and supply of these goods.
Increasing population of India is one of the main factors of price increase. Demand exceeds supply by a large margin and demand keeps increasing as population increases. In addition, changing habits have well increased the demand for certain goods that can be supplied.
From the supply point of view, factors such as uncertain weather, lack of cold storage and lack of warehousing facilities play a huge role in pushing prices up. A high percentage of vegetables and fruits are wasted due to inadequate cold storage facilities, affecting supply and raising prices.
Goods such as petroleum, which are largely imported, are subject to international prices. Therefore, the moment there is a global decrease or global price increase, these things become dear.
Artificial gaps in supply are created by unscrupulous operators such as black markets, hoarders and traditional traders. By withdrawing these goods, they are able to create a huge demand and thus, increase prices.
Since these items are necessary, price increases have both economic and political consequences. The price rise becomes part of the political agenda of the opposition parties to attack the government. By doing this they try to show solidarity with the common man. However, there is no doubt in the fact that it is the common man who is most affected at the end of the day. Comprehensive reforms are needed to control hoarders and improve agriculture so that the price rise for essential commodities is not found by the common man where it hurts the most – his wallet is mainly affected.
Essay on inflation, Essay on Rising Prices in hindi (500 words)
The fact that the Indian economy is one of the largest economies in the world cannot be denied. It has recently distinguished China as the fastest growing large economy and ranks third in GDP in terms of purchasing power parity. While these figures are good, the Indian economy is also facing many challenges, one of which is to increase prices.
Due to rising prices:
The factors that cause prices to increase are twofold – internal and external.
Global inflation is an external cause of price increases. When the prices of some goods abroad are high, imports of these goods incur higher costs. This increased cost is directly and indirectly passed on to the consumer. For example, when oil prices rise globally, importing oil becomes more expensive. In turn, this affects the prices of oil products such as petroleum and diesel in our country. Then the consumer has to pay a higher price to get these products. Since these are products that are used in transportation, the cost of the goods to be transported also increases. Therefore, items such as food items and other necessities also become more expensive.
These are factors that are caused by economic and political conditions within the country. There are various intrinsic factors that cause prices to rise. Some of them are:
Rapid population growth: Increasing population demands increasing amount of goods. Demand increases and supply cannot continue, thus raising prices.
Income growth: As the purchasing power of the population increases, the demand for goods and services also increases. Again, demand outstrips supply and prices rise.
Inadequate agricultural production: Thanks to growing population and increased purchasing power, demand for agricultural commodities has increased. However, because the sector has been neglected to a significant degree, it cannot keep up with demand. One drought or flood is enough to disrupt supply and raise prices.
Inadequate industrial production: The industrial sector has performed better in the hands of the government. However, the industrial growth rate has only increased in the last 30 or so years. Therefore, demand for certain industrial products such as basic consumer products and agricultural and industrial inputs has not decreased, resulting in price increases.
Effect of rising prices
The rise in prices inevitably affects the lives of the general population. When the prices of basic goods such as food items rise, people who are living just above the subsistence level, they go below the poverty line. It also affects the pocket of the population that has determined the income.
Prices rise but their wages remain the same and, therefore, they are either forced to spend more or give up some goods altogether. The rich are not really affected by price increases and, therefore, the gap between rich and poor widens almost daily.
Whatever is happening in the country, but the situation around the world does not affect the price rise. Although some factors are not under anyone’s control, it is essential that governments do what they can to control huge price increases.