Increased Prices of Necessary Goods and Inflation Affecting the Poor Working Class People.

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  • Topic: Inflation, Poverty, 2007–2008 world food price crisis
  • Pages : 12 (3702 words )
  • Download(s) : 593
  • Published : November 9, 2012
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Research Paper

Increased prices of necessary goods and Inflation affecting the poor working class people.

Submitted By
Minhazur Rahman
Course: ENG -105

Abstract
Global food price has shot up in the last years that have been succeeded by an extraordinary global economic down-turn; Rich, mid and poor economies are affected largely in terms of erosion of growth, shrunk investment and lessening of job creation. The global food crises and the economic recession in the major economies have created a complex scenario whereby food price may not stabilize creating erosion of income of the common mass and making investment more costly. This is presenting tremendous challenge to countries like Bangladesh which is plunged further in economic deprivation and stagnation. The bad impacts of high prices on food stuff is devastating the on the poor producers, wage laborers and consumers in our country. These people are surviving very harshly in these dire situations and are having many difficulties living their lives.

This paper is the outcome of a research conducted to analyze the impact of price hike over lower working class people. The Research consists of the Introduction containing Background of the Research, Areas of the Research, Hypothesis, Methodology, Data Analysis, Findings, and Recommendations. The purpose of the research was to identify what are their actual problems these people are facing because of price hikes and high inflation.

TABLE OF CONTENT

1. Introduction………………………………………………………………………… 4| 2. Background…………………………………………………………………………… 5| 3. Areas of research……………………………………………………………………… 6| 4. Hypothesis……………………………………………………………………… … 6| 5. Methodology………………………………………………………………………….. 7| 6. Review of literature………………………………………………………………….. 8| 7. Key terms…………………………………………………………………………….. 8| 8. Limitations…………………………………………………………………………… 9| 9. Primary data presentation and analysis……………………………………………. 10| 10. Recommendation…………………………………………………………………… 24| 11. Conclusion………………………………………………………………………….. 25| 12. Reference…………………………………………………………………………..… 26 13. Appendix………………………………………………………………………..…… 27|

Introduction

Since early 2007, Bangladesh has been experiencing a rising rate of inflation particularly in food grain at the backdrop of global hike of food grain prices. The rising inflation has become a major threat to people from all segments of the society. This higher inflationary trend does not bode well with respect to the socio-economic progress, particularly, on the poor and vulnerable groups. Rapidly higher food inflation has made it difficult for the low income households to carry on with their daily basic expenditures. According to the World Bank, four million people have been pushed below the poverty line due to abnormal rise in food price. Another statistics of the World Bank shows that between January 2010 and March 2011, the gross income of the poor decreased by 46.7 percent mainly due to surge of food items, pushing 3 million households below the poverty line. Even the bumper boro harvest could not save the people from the grip of high inflation. On the other hand, the adverse impact of inflation has created a stumbling block to macroeconomic stability and curtailed the pace of economic growth, which is necessary to poverty reduction and meeting other development challenges and goals.

This research shows what problems the low earning people in our country are facing right now because of the inflation and the increasing food prices. This also shows that what are the foods they are likely to consume and the prices trend of those foods over a period of years. This shows that how much the price of necessary foods has...
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