Inflation: Cause and Remedy

Abstract

Inflation affects the purchasing power of consumers and the overall stability of an economy. This article examines the primary causes of inflation, including demand-pull and cost-push factors, supply chain disruptions, and monetary and fiscal policies. It discusses the socio-economic consequences of rising prices, particularly on low- and middle-income households. The article also explores potential remedies, such as effective monetary regulation, price stabilization measures, targeted subsidies, and improved governance in economic management. By understanding the causes and implementing appropriate policy responses, inflation can be controlled, ensuring sustainable economic growth and improved welfare for the population.