Inflation has become a growing problem in every corner of the world no matter which continent you are in. Asia, Europe, Africa or America, everywhere people are worried that the things in their daily life are getting expensive and the price of things is increasing every year. But in the last few years, this increase has become too much and it is putting a lot of strain on the pocket of the common man and the thing which was earlier available for ₹ 100, is now available for ₹ 150 or ₹ 200.


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There are many reasons behind this entire situation and the biggest reason was that the final lockdown due to Covid-19 stopped everything. Then everything stopped: production, transportation, input, and export. Everything is now temporary, and its effect was so significant that even the biggest supply changes have been halted temporarily. But its effect was so deep that their supply could not become normal and when the supply ended, how would the demand remain, so naturally the prices started increasing and because of this imbalance, inflation and demand have changed and a problem has arisen.

Another important factor is the relationship between Ukraine and Russia is not just between the two countries. Its impact is worldwide. Both Ukraine and Russia are major food gainers and energy suppliers in the world and oil and gas are imported from Russia to many countries there is a huge supply of items like white and cooking oil and when the supply is distributed, there is a shortage in the global market and this has a direct impact. The rise in price means rapid inflation, impact on transport, manufacturers, delivery, everything.

At the same time, the Central Bank is also increasing the interest rates to control inflation, like the Federal Reserve had raised the interest rate and this made it costly to take a loan. Investment kept decreasing and theoretical demand kept reducing and this had a side effect ang growth slows down and people's financial burden increases. Developing countries like India, Brazil, and South Africa are more affected by this because they already have limited resources. Their finances are weak.

Inflation is not a topic of economics. It is a global challenge and every month people start losing confidence and for the low-income group, their emotions also get stressed. If the income doubles, then the savings become zero and one starts postponing his dreams. Buying a house, children's education, vacations, everything gets delayed and it has a huge impact on society and mental health in the long run.

Another aspect is country devaluation and when inflation is high, the value of gold falls and this means that the capacity of your households to spend their money reduces. And for developing countries, it becomes even more difficult because their import bill increases like oil, electronics, and medical, everything is imported and when gold weakens against the dollar, things become even more expensive. A paradox of globalization and the world becoming more dependent on each other, so no crisis is limited to a country and if lockdown is imposed in China then electronics become expensive in America and if energy prices rise in Europe then industrial cost increases in India and when this lesson of interconnected economics gets shaken everywhere then another complete system gets created.


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The government is trying to deal with this problem everywhere and is implementing policies like subsidies, direct cash transfers, tax cuts etc. But the problem is that inflation is not a fixed thing and it cannot be controlled until the supply and demand balance is achieved. On the other hand, climate change is a hidden threat and fluxes and extreme weather conditions also affect the crops and when the weather is disturbed, the price of fruits automatically increases. On the promise of the government, they invest in many of their savings plans. Many people buy milk branded milk by changing their basic list. They buy fruits and things. They use public transport or do not go to any family function and this lifestyle is not just temporary but becomes a long-term adoption, so the quality of life of these people is impacted.

Business owners are struggling a lot and their margins are decreasing due to the increase in the price of raw material which increases the price. Appointments have to be made and this appointment increases which depresses the economy and becomes an adjective and stations and regions start moving together and this cycle is very difficult. If inflation is not controlled in the coming times, the world will have to face economic and social challenges and there is a need for smart policies, better global cooperation and sustainable practices only temporary relief or subsidies will not solve this problem and we will have to do long-term planning. Clean energy, local production, efficient logistics and finance literacy will have to be promoted.


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In the end, inflation is such a challenge that affects everyone equally, but its impact is renewable; those who are financially strong can adjust, but for those who are in the middle-class segment, this day is a new battle and until the system is not made inclusive and brings equality, it is difficult to avoid high prices and when a common man is not able to manage his expenses, not only his budget but his dreams will also be shattered.

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