Price Hike

PRICE HIKE
To understand this term we divide this term into two parts; Price and Hike and explain both the parts separately.
Price is the value paid by the provider or supplier in the form of currency for rendering goods & services. While Hike is an abrupt increase or rise.
It means that there is rise in prices of the goods/services required by the people living in the world. These goods/services belong to following sectors;
1. Agriculture
2. Health and Medicine
3. Education
4. Manufacturing/Industries
5. Energy & Technology
Rising Prices have affected all these fields.
The question arises here is that what are the reasons of price hike?
Some of the reasons are,
 Rise In Demand
 Artificial shortage of goods
 Imbalance between import and export
 Economic imbalance
 Political unstability
 Over whelming debts due to wrong political decisions
 Lack of resources
 High level of taxes
 Increase in production & labour cost
In the language of Economics “The demand and supply is the economic model for the price determination in the market”.

Price hike can be associated with the ever rising inflation rate

IN 2008 IT WAS 11.5 %
IN 2009 IT WAS 23.8 %  A minute plunge in the value of dollar causes the value of Pakistani rupee to sink deep
 According to some economists, by 2012 the debt servicing will constitute 68% of total budget from a record low of 34% at the end

 The outcome of these ever increasing turmoil’s will only cause the prices of common goods and commodities to rise sky high.

Few examples about how is Price Hike Effecting these sectors

Agriculture
Food is a essential requirement of any living organism. Rising prices has affected the edibles things. The main reason of rising prices of edibles is the flood which has destroyed our agricultural system.
Devastating weather has destroyed Pakistan's food pricing system as severe flooding have wiped out crops and many livestock are now lost. Almost 700,000