Inflation! Inflation!! Inflation!!! (Cause and Effect)

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Inflation is one major thing or factor that affects the economy and also contributes to the high cost of living and there are also factors that also contribute to what causes inflation. Inflation usually happens when the currency of a country loses its value and the prices of goods and commodities become very high, that’s exactly what’s going on in some countries right now but for Nigeria, it’s an everyday stuff nothing new.

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In Nigeria what goes up and never comes down in the price of goods and commodities, once it gets an increase, that’s it, either it keeps going up or just stays where it is for a little time and what remains stagnant without an increase in salaries of workers. You can be earning 50,000 Naira monthly and the cost of electricity could be 5,000 a month which is sometimes not predicted, water bill 3,000, gas bill 7,000, and transportation 10,000 monthly that would mean your bills in total per month is 25,000 and you just have 25,000 to spend for yourself.

Now when inflation hits and everything changes like the price of gas turns 10,000 and water bill 5,000, transportation price will also increase because of the gas bill to 12,000 and electricity bill turns to 10,000 then the total amount to spend monthly for a bill will result to 37,000 per month which will then leave you with 13,000 which won’t be enough also because of the cost of foodstuffs that will also increase and one thing is for sure, despite the increase of prices and living, salaries won't, which will then lead you to scrap so many things out of your budget, like entertainment subscriptions.

Sometimes inflation isn’t that bad, especially when it’s expected and the people that usually expect or predict it are the entrepreneurs. Oftentimes, when I pass through the market I hear some market women discuss how prices might change either the following week or month and they make plans about how they can buy in bulk before that day. The only good thing about inflation is that, when it is kept at a reasonable level, it helps to encourage people to either work hard or save more instead of spending lavishly.

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