Impact of inflation on common people-pakistan

IMPACT OF INFLATION ON COMMON PEOPLE – PAKISTAN PERSPECTIVE : 

IMPACT OF INFLATION ON COMMON PEOPLE – PAKISTAN PERSPECTIVE NAME: Muhammad Fahad Rasheed. PROGRAM: CAM(Semester-1)

Index : 

Index Introduction Decrease in purchasing power Limited employment opportunity Impossible to make monthly budget Stocks become less valuable Food prices continue to pinch Reduce their Money holding Effects of inflation on different sections Conclusion

INTRODUCTION : 

INTRODUCTION “Inflation is the rise in the prices of goods and services in an economy over a period of time.”

DECREASE IN PURCHASING POWER “Inflation decreased purchasing power of the rupee and its depreciation”.Inflation diminishes the purchasing power by consumers due to the rising costs of goods and services. : 

DECREASE IN PURCHASING POWER “Inflation decreased purchasing power of the rupee and its depreciation”.Inflation diminishes the purchasing power by consumers due to the rising costs of goods and services.

LIMITED EMPLOYMENT OPPORTUNITY : 

LIMITED EMPLOYMENT OPPORTUNITY Due to Inflation, companies faced with falling demand will limit production. This downturn in production leads to the need for few unskilled workers. Currency inflation forced companies to shift resources away from.

IMPOSSIBLE TO MAKE MONTHLY BUDGET : 

IMPOSSIBLE TO MAKE MONTHLY BUDGET Prices of vegetables and other food items have reached an unprecedented high, making impossible for the common people to prepare their monthly budget.

FACE TAXES : 

FACE TAXES “Rising prices means you have to pay more tax for the same goods and services”.

STOCKS BECOME LESS VALUABLE : 

STOCKS BECOME LESS VALUABLE As inflation goes faster than the return on these assets, they become less valuable. As they become less valuable, people rush to sell them, further depreciating their value.

FOOD PRICES CONTINUE TO PINCH : 

FOOD PRICES CONTINUE TO PINCH Increase in food prices in the Pakistan is taking a cost on people as retailers are take advantage of the global trend.

REDUCE THEIR MONEY HOLDINGS : 

REDUCE THEIR MONEY HOLDINGS People of Pakistan’s will try to get rid of cash before it is devalued.

EFFECT OF INFLATION ON DIFFERENT SECTIONS OF SOCIETY : 

EFFECT OF INFLATION ON DIFFERENT SECTIONS OF SOCIETY WAGE EARNER Wage earners in general are losers during period of inflation. The wage earners are labour so it is divided into organized and unorganized sector. Organized labour Market gets the compensation through union but unorganized labour Market doesn’t get the increment in wages as compared with organized sector at time of inflation.

Effect of inflation on Different sections of society Cont…. : 

Fixed Income Class: Fixed income class groups are the losers during the time of inflation. The reason is income is fixed but the prices of goods, commodities & services increases. Borrower & Lenders In this case Borrower gains and lender losses. For example a borrower take a home loan at percent say 12% on Rs. 5,00,000/- for five years at simple interest . After 5 yrs the rate of property gets double. So after five yrs borrower will pay Rs. 8,00,000/- but the value of his property is Rs. 10,00,000/-. Effect of inflation on Different sections of society Cont….

CONCLUSION : 

CONCLUSION “In Pakistan income increases at a slower rate as inflation, People’s standard of living declines even if you are making more”.

Slide 15: 

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