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Hello my Steemians Friends..

Inflation. Every country strives to avoid that kind of situation. Inflation is related to today's situation. For example, today one dollar may buy one kilogram of apples. However, due to inflation, the next day we no longer receive 1kg of apples for $1. We have to spend up to $2 for 1kg of apples. That is inflation, a situation where by the value of currency falls.

Express your views on how to reduce inflation.

Lowering inflation I think is a fiscal policy for the country level. It requires careful attention and action. Because the level is policy, of course it can affect many people. Especially the level of public welfare.

But if just opinion, i think there are several ways that are usually done by countries to reduce inflation, among others:

1. Reduce the amount of money in circulation with tight monetary policy.
2. Reduce spending or raise revenue by increasing revenue through tax increases.
3. Adjusting the price of goods by providing subsidies or similar
4. Implement regulations for fair competition in the market. So there is no monopoly that will cause price volatility.

Actually, there are still many ways that can be done. But I only thought of a few and that's all I can give.

Explain how product inflation occurs.

Basically, inflation occurs when demand is greater than supply. Such a situation will create scarcity of goods. As we know, when goods are scarce, they are expensive. that's how inflation starts. So what's the impact? The currency becomes weak and loses value. Of course, the presence of other factors makes inflation even greater and difficult to control.

What is the reason why inflation is higher in the village than in the city?

The main reason I can think of is because rural areas are located far away from urban areas. That causes distribution to the villages to cost more, so of course the price of goods will also be more expensive.

_pexels

Another factor contributing to greater inflation rates in rural areas is a lack of competition. As a result, rural areas are more likely to experience monopolies, which can contribute to higher inflation. Because they tend to be able to set prices at will.

Explain what role you think the country's government should play in reducing inflation.

I think the government can play its role in making policy. Because no one can make policies for the country other than the government. They are authorized and capable of it.

_PEXELS

Since the inflation rate is a very important factor for the development of a country, it can start from a clean government without corruption. There is no need to talk about inflation at length if the main cause is still there.
I have already mentioned some of them at the beginning of this paragraph. But if the main cause is still there, I think it might be pointless.

_{Thanks to @mainuna for organize this contest. I invite @meriseptriyanti @fantvwiki @miftahulrizky to join this contest.}

Best Regards

@lil.albab

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