Contest Alert! My Thoughts on Growing Inflation Rate

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Assalam-O-Alaikum!

Greetings to everyone in this community,
How are you all doing? I hope all of you will be doing well by the grace of Almighty Allah. I welcome you all to my blog and I also use this opportunity to thank @hive-109435 for bringing an enlightening topic to participate in which is titled My Thoughts on Growing Inflation Rate. I really will enjoy writing about that amazing topic.
So let's started without any delay

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According to you, what are the major reasons behind the growing Inflation rate, specifically in your country?

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I live in Pakistan. Rising inflation has worried everyone living in Pakistan. The prices of everything are increasing day by day. There are many reasons of it. The major factor of raising inflation day by day is due to taxes that put every day on the population of Pakistan.

Here are some others factor's or reasons of increasing inflation in Pakistan

High fuel and Energy prices:

High fuel and Energy prices are direct proportion to the inflation because if the prices of fuel increased, the prices of every thing already increased or everything depends on it , If the prices of the fuel stable or decreased then inflation rates are already decreased.

IMF bailout Conditions:

The major reason of inflation in Pakistan is due to IMF because Every government that is established in Pakistan takes billions of loans from the IMF as soon as they come, which becomes difficult to repay later. Every government takes a loan to reduce inflation and then returns the loan by increasing inflation, this is a strange law in Pakistan.

Import restrictions:

restrictions on import and export in items are directly effects the inflation. If we restricts import the value of the items increased and due to High purchasing, shortage of the items occurs and the prices of that items increased.
If we restricts on export the value of the items decreased due to high production, If we do not export the goods, we will not have dollars, if dollars do not come, then there will be more inflation because we have to pay back what we borrow in dollars.

Subsidy removel :

the removel of subsidy and put on taxes are also contributed to inflation.

Currency fluctuations:

Devaluation of Pakistan's currency can results of higher prices of imported goods , affecting overall inflation rates.
Due to currency fluctuations,the value of the currency decreased. Due to devalue of the currency,if you have collected 1 lac rupees after,later your money has been devalue and you have 75 thousands rupees left.

Political instability:

Political instability is another important factors of increasing inflation in Pakistan because political instability can disrupt a economic policies , it can also impact negative effects on investors confidence, such instability may leads to inflation and economic management become a challenge for the present government.

Agriculture Sector:

Inflation can effects on agriculture productivity and prices that can impact on farmers income.

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Do you think that the increasing Inflation rates effect all the classes and fields of the life?

Yes , increasing inflation can also effect all the classes and Fields of the life , but it is vary on the economic situation of the people , spending habits and income level of the individual.

Here is how inflation can effect different people

Low- Income Households:

inflation directly effect the low income households because they spend larger portion of their income on the basis necessities like energy, housing and food.

Middle class:

The class that is most humiliated by inflation is the middle class because they are struggling to become rich and are very afraid of falling below the poverty line. Middle class also experience a squeeze on their disposable income, inflation make it harder to manage discretionary items and savings of middle class.

Saver's:

inflation can reduce the value of savings over time because purchasing power of decrease.

Fixed-income earners:

inflation rates may effect the individual living on the fixed income such as government servent, pensioners and labor class. Pensioner may see a reduction on the purchasing power because it inflation may erodes the value of their income.

Investors:

inflation can also effect the investors because it can erodes the value of their investment, particularly those investors who have fixed return's , such as bonds.

Farmers:

Inflation can also effect the farmers, due to inflation the profit margins of farmers decreased.The farmer spends a lot of money on his crops and grows them. If the market price of the commodity is very low, then his expenses will not be met.

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As a common citizen, how can we play our part to control the Inflation?

As a common Citizen we can play a significant role to control the inflation by making informed choices in our daily life.

Here are some ways to contribute,

Educate Yourself:

Educate yourself to reduce inflation that occurs if we stay informed about economic trends and factor's that contributing inflation. Think before making wrong decisions.

Reduce food waste:

plan meals, if you cocked some extra meals then use it on leftovers and compost to reduce food waste , it can reduce your grocery bills .

Budgeting:

Manage your finance wisely by creating budget and sticking on it to reduce inflation. This helps you spend within your means and avoid to reduce your debt , which can contribute to reduce inflation pressure.

Savings:

Save money regularly, it can provides you stability for yourself, it can also reduce the risk for excessive borrowing which can drive up inflation.

Be mindful of consumption:

Avoid excessive spending , always prioritie your needs over wants.

Support local Business:

Always prioritize to bought items from locals, from this action your money spending on your country and it can reduce the costs of transportation and always support the local economy.

Reduce Energy Consumption:

Reduce Energy Consumption by using public transport and adopt eco-friendly habits.

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Special Mention
@simonnwigwe
@steemflower
@saintkelvin17
@steemdoctor1

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