ZAHID ALI MUGHALZAHID ALI MUGHAL

Inflation Or Rising PricesInflation Or Rising Prices

contentscontents What is inflation…???What is inflation…??? TypesTypes CausesCauses EffectsEffects ReasonsReasons How to survive…..???How to survive…..??? RecommendationsRecommendations ConclusionConclusion ReferencesReferences

What is Inflation…???What is Inflation…???

The rate at which the general level of The rate at which the general level of prices for goods and services is rising and prices for goods and services is rising and purchasing power is falling.purchasing power is falling.

TypesTypes Demand-Pull InflationDemand-Pull Inflation Cost-Push InflationCost-Push Inflation Pricing Power InflationPricing Power Inflation Sectoral InflationSectoral Inflation

CausesCauses

A.A. Increase In DemandIncrease In Demand1.1. Corruption And Black MoneyCorruption And Black Money2.2. Population BombPopulation Bomb

B. Decrease In SupplyB. Decrease In Supply

1.1. Slow Agricultural DevelopmentSlow Agricultural Development2.2. Slow Industrial GrowthSlow Industrial Growth

EffectsEffects Good EffectsGood Effects1.1. There is increase in production due There is increase in production due

to inflation.to inflation.2.2. Inflation increase the employment Inflation increase the employment

opportunities in the country.opportunities in the country.3.3. There is more investment in country There is more investment in country

at the time of inflation.at the time of inflation.

Bad EffectsBad Effects 1.1. It is a huge problem for employees It is a huge problem for employees

taking fixed salaries.taking fixed salaries.2.2. Inflation reduces the saving of the Inflation reduces the saving of the

people.people.3.3. It creates a lot of social evils.It creates a lot of social evils.

ReasonsReasons Inflation across the world is building Inflation across the world is building

up due to increase in global fuel up due to increase in global fuel prices which quickly feed into overall prices which quickly feed into overall prices.prices.

Devaluation of currency also effect Devaluation of currency also effect the inflation rate, government the inflation rate, government policies also result in devaluation of policies also result in devaluation of the currency.the currency.

How to survive….???How to survive….??? Be wise when holding cash.Be wise when holding cash. Be careful when buying bonds.Be careful when buying bonds. Learn about bartering.Learn about bartering. Ask yourself, do I really need these Ask yourself, do I really need these

things I am spending my money things I am spending my money on???on???

RecommendationsRecommendations1.1. Proper taxation systemProper taxation system2.2. Increase foreign reservesIncrease foreign reserves3.3. Stop corruptionStop corruption4.4. Devaluation of moneyDevaluation of money5.5. Produce electricityProduce electricity6.6. Strong monitoring system on Strong monitoring system on

different levelsdifferent levels7.7. Development in agricultural sectorDevelopment in agricultural sector

ConclusionConclusion It is necessary to study all the causes It is necessary to study all the causes

of inflation. Then these causes of inflation. Then these causes should be removed or eliminated.should be removed or eliminated.

ReferencesReferences

1.1. http://www.articlestudy.com/http://www.articlestudy.com/2015/12/21/inflation-in-Pakistan2015/12/21/inflation-in-Pakistan

2.2. http://www.finance.gov.pak/admin/http://www.finance.gov.pak/admin/images/survey/chapter/07-images/survey/chapter/07-inflation09.pdfinflation09.pdf

3.3. http://en.wikipedia.org/wiki/inflationhttp://en.wikipedia.org/wiki/inflation