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Essay on Inflation - 450 Words

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Essay in very simple language with the boundaries of different words here. Here you can find Essay on Inflation in English language for 5, 6, 7, 8, 9, 10, 11, 12 and banking or other competitive exams students in 450 words.

There is no such thing or item that has not yet increased. The rise in prices has become a common feature in India and people have been resolved with this fact. The rise in prices is called inflation.

There are many factors contributing to this increase in prices. There are some natural factors such as the adverse weather conditions that affect food production and cause a shortage of commodities in the market. With more money chasing low inventories, prices are taken to the wings.

Adding this natural problem is the other man-made problems such as billboards that contribute to the increase in prices. The moment the business community feels a lack of certain items or products, especially essential items; They resort to mass storage. They leave the deposited items after the increase in prices and make a clean margin on their investment in the deposited items. Although the government has the necessary powers to investigate hoardings, but it does not have the necessary manpower to carry out tremendous acts.

In addition to natural factors and man-made factors, which increase the prices or inflation, the government also contributes to the increase in prices by imposing high taxes on raw materials and finished products. Is it surprising that the increase in prices has become a common feature in India, adding to the nature of the government and the depositor inflation trends?

The inflation rate is getting around 4 to 5 percent in recent times. This is definitely the official rate of inflation. But rising prices in the retail market do not really reflect this slight rate of inflation because these figures are related to the wholesale price index and there is no relation to excessive retail prices.

To keep the prices of essential commodities in control, and within the appropriate limits, the Indian government had constituted a special committee of secretaries on the cabinet committee and monitoring prices at prices. These bodies regularly monitor the prices and supplies of regular items. Apart from these, the Department of Consumer Affairs monitors the prices of 12 essential items such as; On daily and weekly basis, wheat, rice, sugar, tur, gram, groundnut oil, mustard oil, vegetable, salt, tea, potatoes and onions. Those items which are in short supply are imported.

Although the steps of the government to check inflation are plausible, but these measures will only have a positive effect on prices when they meet with heavy drives against hoarders, black marketers and anti-social elements. An unprecedented increase in the prices of onion and fireplace in 1999 certifies the power of the depositors who maintain the havoc with the market. As long as billboards and black marketing are not checked effectively, prices will continue to increase.

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