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1) As inflation increases, the purchasing power of consumer decreases, which leads to decrease in demand for products(producers earn less)

2)Input costs increases, profit margins go down. Producers purchase products on the price which is higher on which they sell(struggle from unprofitability)

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force into bartering, securing their cash to purchase essential goods

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force into bartering, securing their cash to purchase essential goods

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stress & anxiety among struggling families

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stress & anxiety among struggling families

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Expected future price levels incentivize purchase, they do not save anymore; they exchange currency into less fluid assets

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demanding higher wages to subsist their high PL living standard

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demanding higher wages to subsist their high PL living standard

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People start feeling insecure and mistrust towards the government.

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the traditional mindset of stocking goods becomes less profitable

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the traditional mindset of stocking goods becomes less profitable

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Trade local currency into more stable foreign currencies to save

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Inflation became the central topic political parties argue on, method for achievement

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Inflation became the central topic political parties argue on, method for achievement

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Unhappy labor put on protests that cause political stress

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Price uncertainty on the market affects producers’ ability to set stable prices

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Price uncertainty on the market affects producers’ ability to set stable prices

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What is government supposed to do when there is high inflation? 

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What is government supposed to do when there is high inflation? 