"How to Control Inflation"

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Hope we are good.

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I am @owulama and I will be taking part in this awesome contest titled; "How to control inflation"

And I hope my amazing and wonderful people of Steemit platform will read through and learn from my post. I assure you that It's going to be really educative and impactful.

Express your views on how to reduce inflation.

Introduction: In my own terms inflation is seen as the constant increase in prices of goods or commodities in the market in a particular country or state.

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When the prices of goods keeps going higher instead of reducing, it is called Inflation. Inflation is the direct opposite of what deflation means.

Inflation happens when the prices of goods and services increase over a long period of time, reducing your purchasing power.

when inflation occurs the purchasing power decreases and it also increases the cost of living of a given country.

In summary, inflation means that your money may not be able to purchase goods and services as much as you use to previously.

Below are my views on how inflation can be reduced!

To reduce inflation, several strategies can be employed.

Firstly, I will love to talk on price controls of goods and services in the market by the government.
When there's inflation, you see companies, firms trying so hard to add the price rate of goods in other to maximize profit and deal with rising of goods.

One of the major way to reduce this inflation is for the government to introduce price control and be strict on it. There should be limit to setting of prices on goods, this will really help reduce inflation.

I understand that business are established with the sole aim for profit maximization, but then when the prices of goods are too high and can't be controlled then, it can result to inflation.

Inflation can also be reduced by an adjustment in monetary policy of the given country. Implementation of monetary policy will make the interest rates higher, which will degrees the purchasing power and then help in lowering aggregate demand.

Lower demand therefore will lead to reduction in prices of goods and also reduces the cost of living of a country, this can reduce inflation.

Another way to reduce inflation is that government should control and be able to reduce expenditure on non-governmental activities unnecessarily in order to reduce inflation.

It will also reduce private expenditure which is depeyon governmental demand for goods and services.

It is not easy to reduce or control government demand, but then when the government expenditure is minimized it really helps in inflation reduction.

One of the important measures that can be used in inflation control is to increase the production of essential goods that will be in great demand in the country, essential consumer goods like clothing, sugar, food, kerosene etc should be produced in a larger quantity.

High productivity helps greatly in reducing inflation.

Infact when there's need for raw materials that will be needed for production, government should take it a burden to import those raw materials in order to increase production of essential goods and commodities.

Cause that will really go a long way to help in reducing inflation in a given country.

Explain how product Inflation occurs?

Product inflation can occur as a result constant increase in the demand of that specific product, good of services, then the available supply decreases.

When there's just few or limited items for supply, the price of goods increases alot and can cause inflation.

The fewer the available supply the higher the price the customer will be willing to pay for the purchase of the available supply, according to the economic principle of supply and demand.

It will result to higher price due to the demand-pull inflation.

Alot of our Companies today also plays a role on how product inflation occurs.

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Especially when they produce unique products that is limited and is majorly manufactured by them.

They company can simply decide to increase prices of the supply because consumers will be willing to pay for the product irrespective of the amount.

Product inflation can also occur when companies raise prices of that product, it mostly occurs when the particular item product for sale is something the consumers need for everyday living, example, items like gas and oil etc.

However, great need for supply of the product from the customer can also give the companies leverage to increase the product prices, which can lead to the product inflation.

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

Reasons why inflation is more higher in the village than the city is because.....

The cost of transportation of goods from the village is high, you can't even compare it with that of the city.

For goods or products to reach the village you will have to spend a lot of money to transport it there, coping with the fact that they doesn't have good roads and the distance is still much.

Not like the city where they have good and tied road, where vehicles can move freely and smoothly. So the cost of transportation of goods and services will be high because if lacks good roads.

When a business man or woman transport goods to the village with high amount you don't expect him to go sell them in the village at a lower price, because the sike aim if business which is profit maximization won't be achieved.

That's one of the reasons why inflation in the village is higher than that of the city

Another reason why village inflation is higher than the city is because, there tend to be more competition in the cities than the villages.

There more competitive products or items and places to get them in the cities than the villages.

Let's take for instance, items like shoes, bags, cement, and lot more of goods like this have hundreds of places in the city, where as just limited places in the village sells or even have them in their shops.

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So as a result of less competition in the village the prices of goods will be more higher in the villages because the customers there will be willing to pay any amount to get those items cause they're limited within them.

It's so amazing that foods are been produced and majority of the raw materials are gotten from the village but their inflation is still higher than that of the cities.

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

The government of a country are to take the following role in reducing Inflation.

Introduction of modern technology, government introduce machines to aid increase production of goods and services, because when there is limited quantity of goods or commodities it will lead to the rise in prices of the commodities.

But in a situation whereby there is huge production in a given country, it will result to low prices of the commodities.

This can be used as a strategy by the government to help reduce inflation in the economy.

Avoiding industrial strike:
The government should ensure that the industries are always up and doing in the production of goods or commodities, in order to ensure the continous, availability and sufficiency of goods or commoditie.

let's take textile industries as an example, when the government declares a strike that will affect the industry or that will bring about the closure of industries,

It will lead to inflation in the country because the industries will not be there to make available supply of the goods for customers demand.

As a result of limited supply of goods there will be inflation in the state economy.

There should be provision of storage facilities by the government.

The government should make provision of storage facilities to enable the sufficiency and availability of goods in the rainy season, where production decreases.

During rainy season where alot of people take their product to replant it in the farm. There should be product in the warehouse that can be supplied to the customers or consumers during that period.

A situation where there are goods in the warehouse, it will help to reduce the rate of inflation in a given country.

In conclusion, government should put more effort in Promoting the following: work, savings, and investment etc.

They government should also Increase capital supply, productivity, personal savings capital supply, that can help to reduce inflation pressures in the given country or state.

I want to sincerely appreciate each and everyone of you here in the Steemit platform for your constant support, votes and replies on my posts.

Thank you also for reading through this my particular post on the contest titled "how to control inflation".

Stay Blessed!!