inflation, standard and cost of living - its relativity.

[Axis]

these three words has a the perculiar collection amongst them.
when there is availability of inflation in a particular country this will bring in some consequences which might then affect the cost of living of the people and in turn affect the standard of living as well.

inflation can reduce the value of money and when this happens prices attached to goats and services will be high and high prices resort to lower demand and the cost of living of the people behind people who find it difficult in their purchasing power and also in the spending of money and discard deeply affect the standard of living of the people in the country.
inflation's also discourages savings we know that savings is one of the important I spent an individual should give attention and consideration to in order to be financially stable. saving of money is being discouraged in an economy this will also increase the cost of living of the people and also the standard of living will be low. when investment in the country is lacking as a result of inflation the flowing or circulation of money in your country who being that this will increase the cost of production and also lower the standard of living of the people in such a country.

that is why it is important for me should try hard in minimising the rate of inflation of the country so that it reduce the cost of production of goods and services and in turn increase and facilitate the standard of living of the people living in such country

 

[Holicent]

Inflation can affect the cost and standard of living in the following ways:

1. People will have money to spend.

2. The prices of goods and services will be more stable, which means you can plan much better for the future and make better informed decisions about what to buy and sell.

3. The cost of borrowing money will drop because interest rates will be lower, which makes it easier for people to take on loans or borrow from friends or family members.

4. With less inflation, the value of your money goes up faster than the cost of living does even though the currency doesn't go through any changes like a change in its amount or makeup (like with a barter system). This means that even if prices go up overall, your purchasing power will remain the same or increase at least a little bit every year.

6. The higher level of investment means that there is more production capacity available to satisfy demand, which means that there will be more jobs created. This increases aggregate demand and boosts economic growth.

7. This could lead to an increase in exports, which in turn would increase foreign exchange reserves and help countries attract more foreign investment.