The impact of rising prices on life

1. Rising prices lead to a decline in residents’ living standards

Rising prices affect residents’ living standards by affecting their actual purchasing power, putting greater pressure on residents’ lives. Food is the most important thing for the people, and rising prices, especially food prices, have a direct impact on the improvement of residents' living standards and quality.

Rising prices have different impacts on families with different incomes. Among them, low-income families in urban areas have the greatest impact. For rural families with meager financial resources, it is even more unbearable and makes things worse.

2. Rising prices have led to the shrinkage of residents’ property

Our country is a big savings country. Affected by traditional consumption habits, most of the residents’ remaining income is deposited in banks. First, they seek safety; Seek added value. However, a sharp increase in prices will lead to a decrease in bank deposit income. Once the price increase rate exceeds the bank deposit interest rate, negative interest rates will appear. Instead of increasing in value, the money deposited by residents in the bank will depreciate, resulting in the shrinkage of residents' property.

3. Rising prices have led to a decline in residents’ consumer confidence

The prices of meat, poultry, eggs, fresh vegetables, gasoline, diesel, liquefied gas and other commodities that are closely related to people’s lives are operating at high levels, resulting in The depreciation of banknotes and the reduction of the physical amount represented by deposits will inevitably affect consumer confidence and consumer psychology. Households will tighten their expenditures and be careful with their budgets, and their consumption tendency will decrease, which will inhibit residents' desire to buy.

4. Residents’ income growth slowed down in the years after prices rose.

After prices rise sharply, the state will adopt corresponding fiscal policies and monetary policies to control price increases. In controlling prices and In terms of economic development, we need to find a balance point, curb investment demand, and control the speed of economic development. The slowdown in economic development will affect the growth of residents' income.

5. It is not conducive to the healthy and stable development of the economy

A pack of salt, a pound of vegetables, a barrel of oil, and a bag of noodles all involve the most fundamental, direct and important issues for the people. Real interests. The continued rise in prices has had an adverse impact on economic operations. It not only raises the production costs of enterprises and increases residents' living expenses, affecting the basic lives of low-income groups, but is also detrimental to the healthy and stable development of the economy.

People's Daily Online - Tibet controls price levels to prevent rising prices from affecting life

Baidu Encyclopedia - rising prices