It has become one of most concerning issues of world. It is becoming the reason of a high price level in the consumer market. So the demand and supply of the commodities are badly affected.
Impact on consumer demands
The prices of commodities such as wheat, sugar, salt, spices, bread, vegetables, fruits, meat etc increased at such a huge level that has diminished the demands of the consumers. On the other hand it is the compulsion of the people to buy groceries for their survival.
Increasing oil prices cause inflation
The economic analysts are saying regarding the dilemma of inflation that it is occurred due to the increase in oil prices in United States. One barrel of oil is reached up to $126 a few days ago, which has become the major concern of sustaining the US economy. Furthermore both the political parties of democrat and republican have failed to control upon the inflation and most of the people blamed to US regime.
War against Iraq caused inflation
America has wasted billions of dollars during the recent war against Iraq which has affected the demand and supply in the country. The prices of the every day commodities increased so much that the people have come to the road and motto against the government. So we could say that local people are demolishing in the grind of inflation.
Meanwhile the stock market of world is facing the perils of inflation due to increase in oil prices and sudden disasters. For example the current earthquake in China has affected the stock market of Asian and Western countries.
Astounding boom in stock market
Yester it was the booming trend when the prices of stock market had increased. That is the inflation which shows us the fluctuating trend of the stock markets. Sometimes it seems to be the boom of stock market and often it looks like a recession of stock market.
Transfer of stock in foreign countries
One of the amazing aspects is deposits. Millions of people around the world are not feeling secure about money. For example the majority of the people of Pakistan are transferring their stocks and money to the accounts of foreign nations such as UAE, Unites States, Canada, and United Kingdom etc. it is just because of heavy inflation.
Inflations causes’ famine
Today there are many countries which are facing the alarms of famine due to inflation and poverty. It is estimated that within next five years, most of the Asian regions such as Pakistan, India, Bangladesh, Indonesia, Sri Lanka, and Afghanistan will be demolished due to the sudden disasters such as hurricanes, tsunamis, storms, famine, earthquakes etc. The regimes of these countries are absolutely careless and they are not taking some serious actions to avoid of the famine dangers.
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