It is widely supported that, rising in the prices of commodities and services reduces the purchasing power of general people, which actually compels the general people to cut their budget on livelihood. Access price of commodities has many detrimental impacts on the financial position of a country, and our country is no exception here. I firmly advocate this argument, and in this essay, I will discuss the issue briefly from different perspectives.
One of the notable impacts of access price of daily necessary commodities on economy is that the government needs to go on a slow pace regarding his development projects, which ultimately affects the country’s people from getting better facilities. Government usually makes some long term and short term plan. But inflation within the countries or globally insists him to decrease budget of various advancement project. The present government of our country recently cuts off its budget on metro rail projects because of global price hike of raw materials.
Secondly, I can mention here that, inflation of products and services ultimately decreases the GDP of the country, which is one of the basic components of determining countries advancement. Recent global data published in various article, supports this issue and in our country, IMF recently insists us to give focus on decreasing product price.
Another negative impact of price hike is that the government are reducing its support to some necessary products which usually are the basic needs for confirming the minimum standard of living of the people. As a result, it is becoming harder and harder for the people to keep pace with the price hike.
To sum up, I can mention here that, rise in products and services affects the financial positions of a country greatly in various ways, such as, reduces the government advancement project, reduces GDP, reduces living satndard of the people.