Respond to the following questions by posting a reply. Remember to include your full name and register number at the end of your reply.
1) What is inflation? (min. 60 words)
2) How is the rising cost of basic necessities affecting you and your family members? (min. 200 words)
41 comments:
1) Inflation is a rise in general level of prices of goods and services over time. Although "inflation" is sometimes used to refer to a rise in the prices of a specific set of goods or services, a rise in prices of one set (such as food) without a rise in others (such as wages) is not included in the original meaning of the word. Inflation can be thought of as a decrease in the value of the unit of currency. There are three causes of inflation: a)Demand-pull inflation, b)cost-pull inflation, and c)built-in inflation.
2) The inflation caused much restrainment on buying basis necessities as we need to think carefully of what we need to buy and not on impulse. Also, we need to compare the cheapest prices in several outlets before deciding to shop in. Nowadays, many shops started rising the cost of necessities in order to earn money from this crisis, thus, we must consider the importance of the object before buying it. To maintain the financial status in the family, we recycle, reuse and reduce things so there is no need to buy them. We need to wait for sometime to buy things and we started to replace rice with noodle as noodle are less costly and more easy available. Moreover, the inflation made the lives of poor people more hard up as the cash for them is too tight with everyone fighting with a job to earn more income. Inflation caused short supply of goods, thus many people started to rush and buy food all of a sudden, creating a sense of panic and people that are cash-stripped do not have the opportunity to buy food first. Although the government is trying to cope with the situation by giving out coupons and monitoring the cost of items being rise, it does not help much as people were still starving and scrimping. Hence, the best is to wait for the inflation period to pass by while spending cash wisely.
Gan She Hwa (6) 2A
Inflation is a persistent, substantial rise in the general level of prices related to an increase in the volume of money and resulting in the loss of value of currency. It can also refer to act act of inflating something for example, a balloon. Usually, we use the word with the meaning of a persistent increase in the level of consumer prices or in other words, the increase of prices in services or goods.
Due to inflation, (rise of cost of services or goods) many people, including my family, had to think twice before buying anything so as to not waste money on unnecessary items. we also have to compare prices of the things we need to buy from several shops and markets so that we can buy the same item with the cheapest price. To cope with the rising cost of practically everything, (except salaries) many people buy items which are produced by the supermarket itself such as the 'NTUC' or 'Giant' as the prices of such items are generally cheaper than items which are imported from other countries. Some of my family members also start to work part-time for several jobs so that we have more income and are able to cope with inflation.
Wang Shu Xian, 30
1) Inflation is the general up rise in prices of goods and services in an economy. Over time, as the cost of goods and services increase, the value of dollar will drop as one will not be able to purchase as much with that dollar as he/she previously could.
Inflation can be caused by either too few goods offered for sale, or too much money in circulation. It is measured by calculating the percentage rate of change of a price index, called the inflation rate.
2) Due to the rising costs of the basic necessities such as rice and flour, my family have to scrimp and save. We will try not to purchase other unnecessary stuff and think twice before buying something. We have also switch to buying house brand items instead of branded items as this will certainly reduce our expenditure. This will also help us cope with the rising costs of other essential items such as our staple food: rice. Also, as many shops have increased the costs of their products, our family will compare the prices of the items such as rice and we will go to other shops before finalizing to buy from the shop sells it at the cheapest price. As our family greatest expenditure is on electricity, we have tried to cut down on it such as by not using the air-con when unnecessary and use the fan instead. We have also reduced frequenting the restaurants often and eat at food courts. To our family, it’s a precious lesson for us to learn as we have learnt not to take things for granted and also appreciate that food should not be wasted. However, it is also due to this inflation that there was a frantic rush for food as people rush and buy unnecessary sacks of rice to stock up the rice in their homes. I feel that this is unnecessary and that it will only lead to more shortages and increasing price of rice.I hope that this crisis will end soon and people can resume their normal lives.
Ong wan ling(17)
1)Defination of inflation : A persistent increase in the level of consumer prices or a persistent decline in the purchasing power of money, caused by an increase in available currency and credit beyond the proportion of available goods and services.
2)The increasing price of crude oil had resulted the price of other sources which needs them to work to increase.
For instance, petrol oil and electricity.
The petrol oil cost had increased tremendously as not much petrol oil is available in this world. The usage of petrol oil had been increasing in the years. Soon families could not afford to travel in cars and would change to take the public transport.
Although taking the public transport could be a good suggestion, because it would cut down the usage of petrol oil in singapore, but people will have to squeeze in buses and trains duing peak hours just to get from one place to another.
Another example would be the electricity. As we all know, to generate electricity, steams have to be produced to enable the turbines to move. To produce steams, crude oil is another indispensible component.
Although dams and windmills were gradually introduced to help produce electricity, but they rely on the nature to help move the turbine. In places without these natural resources, they in the end would still need to rely on crude oil to produce electricity, In addition, these natural resources could not provide electricity for the whole world in the long run.
hence to conclude, we should try to save as much electricity as we could. this would ensure that electricity would be available for the future generations. also, families could pay less electricity bills if they off the electrical appliances when not in use.
sorry. i forgot to put my name
Ong Yet Lin (18)
1)Inflation is a rise in general level of prices of goods and services over time. It then cost the value of money to drop as one cannot buy as many items as they previously able to due to the rise in prices. Inflation is a healthy sign of a country growth. However if the inflation is rising faster than the income of people then it would be a problem for the country.
2)Basic necessities such as food, washing powder and so on are getting more expensive for us to buy. An example is cooking oil. A 5kg bottle of cooking oil used to cost around 12 dollars. However it now cost around 26 dollars now. To cope with the rising inflation, my family buys household brand items, which are usually 10-15% cheaper than other brands. My family is also turning to frozen meat instead of chilled meat as frozen meat are usually cheaper in prices and it taste almost as good as chilled meat and it can be stored longer to prevent any food wastage. To reduce electricity wastage, my family decided to switch off all plugs of electronic items that are not in use to prevent wastage of electricity to keep those items on stand-by. We also make sure all of the electronic items are off when not in use. Curtains would be pulled up in the day to brighten the room to so that there would not be a need to on the light. Air-con would also be switched off in the middle of the night to reduce electricity usage. Television would be switched off by 11pm in the night. Lets hope the government could stop the inflation before it gets worsen and the prices would return to the usual prices before more problem arises.
Toh Kai Bin(39)
1)Inflation is a rise in general level of prices of goods and services over time. Although "inflation" is sometimes used to refer to a rise in the prices of a specific set of goods or services, a rise in prices of one set (such as food) without a rise in others (such as wages) is not included in the original meaning of the word.The overall general upward price movement of goods and services in an economy, usually as measured by the Consumer Price Index and the Producer Price Index. Over time, as the cost of goods and services increase, the value of a dollar is going to fall because a person won't be able to purchase as much with that dollar as he/she previously could. While the annual rate of inflation has fluctuated greatly over the last half century, ranging from nearly zero inflation to 23% inflation, the Fed actively tries to maintain a specific rate of inflation, which is usually 2-3% but can vary depending on circumstances. opposite of deflation
2)2)Now,due to the rising prices of food all around the world,my family have no option but to switch buying food from branded brands to house brands as the prices are just way too high.But even through this,we found out that some food that are not from established brands taste even nicer!And in the process, we can really save up quite a sum.But as food prices are increasing simultaneously,we are also coping hard with house brands food.Now,we will really have to consider hard in buying our basic necessities as in.We would have to ask ourselves,"Do we really need this?" and "Is there anywhere selling it at a cheaper price?"Of course,the main thing that we do now is to buy only the really important ones and forgo the not so important ones.Besides food,using water and electricity and the phone in the house is also going on a tight budget.We will have to save water by not using so much when bathing or etc.The way for saving electricity will definitely be like switching lights when not in use and save when you use fans instead of air cons.The inflation of food prices is also due to people who stock up food in their homes in fear of food shortages in future or sudden increase of food prices.I hope that this phenomenon will stop soon so that we can regain our normal lives soon.
Lye Jie Yi(16)
1)In economics term, inflation is defined as a persistent, substantial rise in the general level of prices related to an increase in the volume of money and resulting in the loss of value of currency.It can also be described as an increase in the prices of goods and services.It can otherwise be described as a state of being inflated.For eg, a balloon being inflated is it being filled with air.For the present inflation currently happening around the world maybe due to the increasing prices of oil.As Singapore resources are usually shipped in from other countries, oil prices will cause shipping prices to increase hence to make ends meet, sellers have to raise the prices to cover the loss for the shipping prices.
2)The inflation of course came as a surprise but my family has been able to cope with it pretty well.Since my mother is always nagging at us to switch off the lights or electrical devices when not in use we had been able to adopt the habit of that and so electrically we are saving money.It is different when it comes to basic necessities though. We try to use it sparingly unlike before which we have wastage most of the time.For example,water. I believe many households are doing this. We have excess water to water the plants or using the water for ironing since our iron uses the steam produced by the boiling of water.Also we tend to compare prices and quality of each product we need to buy before buying the cheapest and the best quality one.The government maybe doing everything to help us but mostly it is up to us to think what we need and what is not needed.So we should have a thinking that is the item a want or a need before we decide that we should save the cash first.Also, although this inflation is affecting everyone of us we should not panic but instead face with it more sensibly.This crisis should not be dealt with by the government alone.We must face this crisis with the government to overcome it.I hope that the inflation can be over soon.There is a saying among the people, everything that connects with money is increasing except the pay of the people.Whether it is true or not is evident to the working class of the people.
Ng Yee Hang(37)
1)Inflation is an upward movement in the average level of prices. Its opposite is deflation, a downward movement in the average level of prices. The boundary between inflation and deflation is price stability.Because inflation is a rise in the general level of prices, it is intrinsically linked to money, as captured by the often heard refrain "Inflation is too many dollars chasing too few goods". To understand how this works, imagine a world that only has two commodities: Oranges picked from orange trees, and paper money printed by the government. In a year where there is a drought and oranges are scarce, we'd expect to see the price of oranges rise, as there will be quite a few dollars chasing very few oranges. Conversely, if there's a record crop or oranges, we'd expect to see the price of oranges fall, as orange sellers will need to reduce their prices in order to clear their inventory. These scenarios are inflation and deflation, respectively, though in the real world inflation and deflation are changes in the average price of all goods and services, not just one.
2)When the cost of basic necessities increases, our family would have to pay more for basic necessities and therefore have less money to buy other things. If my family do not manage our money properly, we would most probably be facing a crisis of spending too much money on these necessities. It would teach us to manage our money well and not be a money spender. We would also not easily believe what the advertisements are telling us about their product and find out more information about the product before we could purchase it. We would find information on the product on magazines which are not bias and ask family and friends' comments on the product. Only products with satisfied comments and information will be bought. Advertisements are not really reliable as they might use endorsements, jingles and slogans to attract customers buy their stuff. If we were easily bluffed by them, we would have wasted lots of money on buying stuffs that we do not even need. Some advertisements like image advertisements would only attract our attention by telling how good will it do if we buy the product however they would not even contain any information about the product. We would also learn to compare prices between different places selling the same product. They may have different prices and probably by comparing them we wold save lots of money. Scrimping money would be necessary if we do not have enough cash. We would change our eating habits. Like if beef was my family's favourite, and its prices start to rise, we would consider eating pork or chicken instead. My family would probably have to work part time or overtime jobs to cope with our daily income. Products that are not a must in our lives should not be bought during this period of time as it would probably be wasting money on them. Only buy products which is a must in our daily lives and products which we know about.
Eliza Ng Sue Ying （3）
2A
1.Inflation is an increase in general level of prices of goods and services over time. Although "inflation" is sometimes used to refer to a rise in the prices of a specific set of goods or services, a rise in prices of one set (such as food) without a rise in others (such as wages) is not included in the original meaning of the word. Inflation can be thought of as a drop in the value of the currency. It is measured as the percentage rate of change of a price index but it is not uniquely defined because there are various price indices that can be used.
Mainstream economists believe that high rates of inflation are caused by high rates of growth of the money supply. Views on the factors that determine moderate rates of inflation are more varied: changes in inflation are sometimes attributed to fluctuations in real demand for goods and services or in available supplies (i.e. changes in scarcity), and sometimes to changes in the supply or demand for money. There are many measures of inflation. For example, different price indices can be used to measure changes in prices that affect different people. Two commonly known indices for which inflation rates are reported in many countries are the Consumer Price Index (CPI), which measures consumer prices, and the GDP deflator, which measures price variations associated with domestic production of goods and services.
2)Because of the inflation,we need to be careful about spending money.We should learn to save money.Saving money can start at home first.We can save the electricity by swithcing off the electricity when not in use,reducing time in playing computer games and watching television.Use fans instaed of air-conditioners and when you do not feel hot,don't switch on the fan.Save water by use water when in need and reduce the water for washing clothes and bathing.Try to eat at home instead of going out to eat.
When going out,try to buy the cheapest brand of items.Buy only the items that you need.If you have to go out and eat,eat in hawker centres instead of restaurants.
Try to take public transport instaed of our own transport so that we can save money on fuel as the cost of fuel have recently risen.
If you want to buy clothes or shoes,don't buy at branded stores.
The best to do before buying things is to do a shopping list.If you have leftover money,please put in your piggy bank in case you need to use money in times of crisis.
Lee Xin Yi(13)2A
1 )Inflation is a progressive increase in the general level of prices brought about by an increase in the amount of money in circulation or by increases in costs.
It is a persistent, substantial rise in the general level of prices related to an increase in the volume of money and resulting in the loss of value of currency.
It can be a situation in country's economy where prices and wages keep forcing each other to increase.
Inflation is also a global phenomenon
It can also refers to
1: the act of filling something with air, to swell or distend with air or gas (inflate a tire)
2: to puff up: elate (inflate one's ego)
3: to expand or increase abnormally or imprudently
2) My family can switch to house brands to beat rising costs.
We think twice when our tummies rumble,
Opting for something to keep us full and suiting our taste buds instead of indulging our taste buds.
This includes us having home-cooked meals which are a cheaper and healthier alternative.
Value -packed meats ( meats in bulk quantities) are economical for families too.
To cope with inflation , we would have to either cut back , meaning scrimping and saving, make more money or both.
As students , we can look for student promotions or as consumers, discount vouchers.
For increasing oil prices, we try using public transport .Use the fan instead of air-conditioners to keep ourselves cool ..Switch off electrical appliances when not in use .These comes back to saving electricity and having to pay bills.
We can compare prices of a particular product from various supermarkets NTUC Fairprice ,Shop & Save ...etc. before buying it as the prices are different.
We must never waste food as people, children from developing countries , especially Africa ,are suffering from malnutrition and mass starvation - with consequences for the rest of their lives.
[1] Inflation is defined as a sustained increase in the general level of prices for goods and services. It is measured as an annual percentage increase. As inflation rises, every dollar you own buys a smaller percentage of a good or service.
The value of a dollar does not stay constant when there is inflation. The value of a dollar is observed in terms of purchasing power, which is the real, tangible goods that money can buy. When inflation goes up, there is a decline in the purchasing power of money. For example, if the inflation rate is 2% annually, then theoretically a $1 pack of gum will cost $1.02 in a year. After inflation, your dollar can't buy the same goods it could beforehand.
Inflation is also a global phenomenon
- the act of filling something with air, to swell or distend with air or gas (inflate a tire)
- to puff up: elate (inflate one's ego)
- to expand or increase abnormally or imprudently
[2] Due to the rising costs of the basic necessities such as rice, my family have to scrimp and save. We will have to eat every single bits of rice just not to waste any of it. Nowadays, we are thinking twice before purchasing anything and we tried our best never to buy any unneccesary items. Not purchasing any branded items also help us cope with the rising costs of essential items. You will surely realised that many shops we see have increased the prices of their products. My family and I will compare the different prices of the products before coming to a conclusion of the products we are buying from.
As for electricity, my family have to use less air-conditioner and switch off fan, air-conditioner, televisions and lights when not in use. This is a good practice and everyone should do it.
It is not necessary for us to go restaurants to eat as it is very expensive. Why not just eat a simple and fulling meal at a nearby foodcourt or hawker centre? They are just as tasty and does not cost as much as what other food are sold in restaurants.
We should spend our money wisely and never waste our parents hard-earned money on useless stuffs.
-Lim Qi Min [14] 2A
Inflation is the persistent increase in the level of consumer prices or a persistent decline in the purchasing power of money, caused by an increase in available currency and credit beyond the proportion of available goods and services. In economics, this relates to supply and demand. If consumers have high demands for goods and services, but the supply of these goods and services does not increase to meet the demands, producers can raise prices and consumers will still purchase the goods and services at higher prices.
Due to inflation, my family buy less of those wants like ice-cream. We also buy more of those cheaper items like those produced by the supermarket itself instead of the more expensive ones. As my family has always been spending wisely, we do not really have much to worry about, just that we do less unnecessary shopping. We only buy our wants when there is offer or discounts. To save more money so that there is enough to spend on those daily necessities, my family will try to use less electricity and water when unnecessary. My parents will also often remind us not to waste water and electricity. We turn off lights and fans when they are not in use and we seldom use the computer for long hours unless needed. As a child, I help our parents to save more money by spending our money wisely and my brother works part-time jobs during the school holidays so that he can help to chip in the bills.
I forgot to write my name...
Sim Jia Lin(22)
1) Inflation is a sustained increase in the general level of prices of goods and services over time or relating increase in volume of money that led to the decreasing value of currency. Inflation causes every single dollar owned to buy a smaller percentage of goods and services than in the past. Commonly, inflation is also used to be referring to the rise in prices in specific goods or services and not in other goods. In short, inflation is the increase in prices.
2) The increase in prices place a restriction to the amount of basic necessities and it led to a limit of things my family and I could buy. In the past, we could just buy the things we needed without serious consideration. Now, when ever we want to buy anything, we would need to take serious consideration whether or not we need this item. We had to separate the items into two categories. The two categories are needs or wants. The needs are those which are essential for life like for example, shampoo, toothpaste and so on. These kinds of items are needed and thus should be bought but we needed to compare the prices of the different kinds of brand and the costs. We would choose those that are cheaper but at the same time of good qualities. We also compared the prices of the same product in the different shops to see which shop sold the product the cheapest. As for the wants, they are just items that we desire to have and that we can live without it. Examples are very expensive hand phones, branded bags and so on. Hand phones ought not to be expensive but should be useful. Cheaper hand phones can also serve the same purpose as those really costly hand phones. Branded bags also could be replaced by just a normal bag since they serve the same purpose as to contain our things. This can save money and over the time, we would have saved a lot of money. To reduce the amount of money used on petrol, we take the public buses now instead of driving. Another way to save money, we reduced the amount of electricity used. Now, we hardly even switch on the air-conditioner at night. We would use the fan instead. We would switch off those plugs that are not in use. As my mother had been nagging at me about the increase in prices of the electricity, I had to reduce the amount of time spent on using the computer and watching the television. My family and I are doing our best to scrimp and save and to overcome this inflation.
Sim Hui Ping (21) 2A
1) Inflation is a persistent increase in the level of consumer prices or a persistent decline in the purchasing power of money, caused by an increase in available currency and credit beyond the proportion of available goods and services. It can also refer to the process of filling something (eg. balloon) with air.
2)Due to the fact that prices of basic necessities, it had originally affected my family members and I badly. Still we managed to cope with the constant rising of basic necessities such as foodstuff, toiletries, clothing and shelter (taxes). When buying groceries, we tend to look for food with lower prices, comparing between different supermarkets, with the idea that it is not true that higher prices means better quality food. Also, items such as New Zealand honey, strawberry and mangoes, we will think twice before buying it, “Are they really needed?” that is what we will think before buying them. It is quite true that we do not really need them. We can also replace expensive fruits like strawberries and mangoes with other types of fruits, such as oranges or apples, they are also very healthy and delicious, most importantly at such times where foodstuff are very expensive, we should not continue buying such expensive things just to satisfy that sudden craving for ‘the certain food’. Compared to strawberries, which is at the cost of over $4 per box, I would rather buy green apples, which cost $1.55 for 5 apples. It is probably healthier and is at a greater quantity though it is not as sweet and delicious. For certain food like rice, which have a sudden and tremendous increase in the price, we did not even have the thought of buying a lot of them, example ten, in one go, because it is not necessary to do so. It is impossible for average people to eat more then 6 bowls of rice per day, due to this fact, it is impossible to finish those large numbered, sacks of rice in less then two weeks. I am not an expert in rice, but I believe that rice might get infested by rice beetles after at least two weeks. When they are infested, they become inedible and HAVE to be thrown away, putting that precious money to waste. Though the inflation of prices has put my addiction on strawberries and mangoes to a stop, I think it is time that I can learn to save money instead of wasting ‘big’ money on such fruits. Lets move on to toiletries, my dad is a ‘professional’ in this category. When we travel past a store that sells toiletries such as shampoo and body soap, my dad will be on the look out for lower prices. For example, we went to Chinatown once and found out that a store sells those toiletries at a much cheaper price then most stores. Therefore, we often come to Chinatown to buy these items to save a lot of money so it the inflation of toiletries did not affect us much thanks to my dad. Luckily for my family and I, we do not really like buying new clothes until Chinese New Year due to the way we were brought up to not waste money on unnecessary items, so it did not affect us much and prices on clothing did not increase much either, so it is not really a big deal. Taxes are a big deal here. Due to the increase in water, electricity and phone bills, I am not allowed to play my computer and playstation too long! Unlike before, where I can play for the whole entire day. This has indeed cause a ‘big’ problem to my sister and I. As for my parents, well, I have to say they are quite ‘lucky’ as they, as adults, seldom care about using their handphone to sms or download music and games. They also seldom stay at home so inflation in prices of taxes did not really cause a big problem to them. We simply have to use lesser water and turn of all electriacal appliances when not in use, and also turn off the fan and lights when no one is using the room, replace the air conditioner with the fan when the air conditioner is not really needed. All in all, we manage to cope with the inflation of prices pretty well. The area that affects us most is the foodstuff but thanks to the government, it is still quite ‘cope-able’. The government has tried to help pretty much by frequently having discounts to most items and also give out coupons to reduce the prices. Inflation in prices really cost much of a crisis to most Singaporeans and probably even to other countries. Well, we can follow the 3 ‘R’s here, reduce, reuse and recycle, though it is usually used for environmental things, but can still be mentioned here. We can overcome inflation if we try, it is not that difficult at all. :)
Jeannie Siong (24)
1)Inflation is an increase in the amount of money and credit in relation to the supply of goods and services or an increase in the general price level,an it is normally an excessive or persistent increase, causing a decline in purchasing power.It is measured by the percentage of price increase. Inflation also can result in a fall of value in currencies.
2) Inflation has lead to the government pursuading people to purchase more cheaper foodstuffs and opt for cheaper brands of daily neccessities and a recent report from Nielsen had shown that there's a noticeable increase in the amount of people who have already opted to choose to buy products from major supermarkets like Giant and Fairprice etc. The resaerch has shown that following the change of more singaporeans opting to buy their daily neccessities has resulted in a decline of people purchasing products in wet markets. This spplies to my family too and my i have noticed that my family makes more trips to buy daily neccessities from supermarkets than wet markets. Inflation has also urged the government to create advertisements to convince singaporeans that quality can still be maintained even if they buy from supermarkets. For example, the buying and consuming of frozen foods. My family has also opted to buy frozen food and indeed, quality is still present from products purchased from supermarkets and there's almost no difference from the both of the products from the 2 different places. The price hike in things that may affect the family's financial status has also made my family decide to take action by putting in efforts to conserve electricity or water in effort to pay less for our utilities bills. We have also tried recycling recently to prevent us from buying new products without considering that we can save bit by bit from what we spend normally. Nevertheless, my family have also understood the importance of saving for rainy days and we certainly hope that the inflation period can pass quickly and as soon as possible. If the problem persists, i still think that we can be able to cope with the problem and we can conquer it with much effort put in decisions during purchasing.
1)Inflation is an increase in the amount of money and credit in relation to the supply of goods and services or an increase in the general price level,an it is normally an excessive or persistent increase, causing a decline in purchasing power.It is measured by the percentage of price increase. Inflation also can result in a fall of value in currencies.
2) Inflation has lead to the government pursuading people to purchase more cheaper foodstuffs and opt for cheaper brands of daily neccessities and a recent report from Nielsen had shown that there's a noticeable increase in the amount of people who have already opted to choose to buy products from major supermarkets like Giant and Fairprice etc. The resaerch has shown that following the change of more singaporeans opting to buy their daily neccessities has resulted in a decline of people purchasing products in wet markets. This spplies to my family too and my i have noticed that my family makes more trips to buy daily neccessities from supermarkets than wet markets. Inflation has also urged the government to create advertisements to convince singaporeans that quality can still be maintained even if they buy from supermarkets. For example, the buying and consuming of frozen foods. My family has also opted to buy frozen food and indeed, quality is still present from products purchased from supermarkets and there's almost no difference from the both of the products from the 2 different places. The price hike in things that may affect the family's financial status has also made my family decide to take action by putting in efforts to conserve electricity or water in effort to pay less for our utilities bills. We have also tried recycling recently to prevent us from buying new products without considering that we can save bit by bit from what we spend normally. Nevertheless, my family have also understood the importance of saving for rainy days and we certainly hope that the inflation period can pass quickly and as soon as possible. If the problem persists, i still think that we can be able to cope with the problem and we can conquer it with much effort put in decisions during purchasing.
oh ya i forgot my name .. Gerald Tan (omgwtflOLWTH IS me)
This is Irene using yetlin's account.
1. Inflation is generally a continuous increase in prices of goods and services overtime or the rate at which prices persistently increase, which is also known as inflation rate. It is sometimes used to refer to a rise in the prices of a specific set of goods and services. It can also be used to refer as a decrease in the value of the unit of currency. Singapore manages the value of its local currency as its chief weapon against inflation. A stronger Singapore dollar helps make imports, such as oil and food, cheaper. However, it also makes local exports less competitive in the global marketplace. Inflation will cause some countries to face a severe downturn in economy growth.
2. with the rising cost of basic necessities, my family and I will be more cautious and will think twice before purchasing any expensive products. We now buy items packaged under NTUC’s Fairprice house brands instead of the more expensive branded items. Instead of indulging our taste buds, we buy things which are affordable and most importantly, reasonable. My mum also turns to frozen meat instead of fresh meat which is more expensive. Both types of meat taste almost the same but when comparing the prices, frozen meat is much cheaper. To save electricity, we used cooling fans instead of air-conditioners. We try to reuse whatever is possible, in this way; we are actually indirectly saving our mother Earth. We compare prices of different stores before buying certain expensive products. The rising cost of the petrol oil does not affect my family a lot because we did not own a car. We take public transport which is absolutely environmental-friendly as it reduces air pollution. Actually, what is driving the prices up? Bad weather which reduces rice yield, record oil prices which raised the cost of producing and transporting food and the increasing wealth enjoyed by the affluent people in China and India have pumped up the demand for meat and other food items. To tackle this problems, Singapore government has diversified our food sources (eg. vegetables now comes from Vietnam and Indonesia, no longer just from Malaysia and China)to reduce the impact of supply disruption from any single source, consumers are also encouraged to go for house brands to tighten their belts. My mum used to buy organic vegetables from supermarket. Since the prices of products hikes, she buys vegetables packaged under NTUC’s house brands which also suit our taste buds. Singapore government has distributed vouchers and subsidies to help Singaporeans tackle against the recent spike in inflation. To prevent hoarding, empty shelves and black market pricing, the government is not going to step in to impose price controls. There is no need for frenzied buying of rice as there is sufficient rice to go around. It is not advisable to hoard as the more people hoard, the more artificially boosting demand and prices increase even more. Consequently, increasing the burden of the lower income families.
In my opinion, we should be responsible and should not rely on the government for subsidies. As Singapore imports most of its food from other countries, hence, we cannot run away from the worldwide trend of increasing prices. Instead, we should trust the Singapore government as it is well-poised to cope with this short-term problem. This is indeed a precious lesson for us to learn to treasure whatever we have.
Done by: Irene Tan Mei Chin (26)
1) Inflation is a rise in the general level of prices over time. It may also refer to a rise in the prices of a specific set of goods or services. In either case, it is measured as the percentage rate of change of a price index. When there is a high demand for certain goods or services, and the sellers are unable to produce the amount of goods or services to meet the needs of the consumers, this will result in inflation. Inflation will also occur when there is a change in the supply or demand for money.
2)Due to inflation, my parents are working twice as hard as compared to the past, in order to earn more money to cope with the current situation. My parents often teach my brother and i not to waste food and are suppose to finish them completely as they are hard to come by nowadays. My brother and I are only allowed to buy necessities, for example, our parents often tell us not to spent money on soft drinks and snacks in school, but only on foods that we really need in order to replenish our energy. My parents also taught us not to waste electricity and to switch off the electrical appliances when not in used, so to save money for other uses. My parents also remind us not to take a long shower as it will waste more money than necessary.My parents often compare prices of certain products before buying anything so as to save the money for other essential uses. My parents have stopped buying video games or branded stuffs for us nowadays as those items are unnecessary. They will only buy them for us every once in a while to reward us when we get good results for our studies or other areas. I hope that inflation will stop and that prices will go down to what they were in the past, so everyone can live in ease and before history repeats itself and another great depression occurs.
Dan Jun Yuan(35) 2A
Inflation is a persistent, substantial increase in the level of consumer prices or a persistent decline in the value of money. It is caused by an increase in available currency and credit beyond the proportion of available goods and service, and it is at a rate at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling.
The rising cost of basic necessities had caused restrainment on buying. My family and I would have to think twice now before purchasing things as to avoid buying unnecessary items as compared to the past. Comparing prices to find the cheapest product is what everyone is doing now. Replacing items is a way of reducing our expenditure. For example, replacing rice with noodles as noodles are cheaper, using frozen meat instead of chilled meat and switching to buying house brand items instead of branded items. Dinning at home instead of at restaurants are preferred for most families. Home-cooked meals are cheaper and healthier. Even if my family chooses to dine out, we will have our meals at food courts. We will also opt for food that keeps us full instead of indulging our taste buds. For me, as a student, I will choose fast food restaurant with student promotion or discount vouchers. Instead of taking public transports, we can walk if the journey is short. Not only can we exercise, we can also save a big amount of money. Cutting down on the time spent chatting on the phone and playing with water in the bathroom can helps save electricity. Using the fan instead of the air-conditioner helps too.Excess water need not be poured away. They can be used to water the plants or for washing of toilets. Every little things help. If everyone plays part, inflation can be overcomed.
Adelyn Sim (1)
1) In scientific terms, inflation means the process of being inflated (e.g. in a balloon). But in general terms, inflation means a rise in prices of a specific set of goods or services or an increase in the supply of money, credit, etc. It can also be thought of as a decrease in the value of the unit of currency. Inflation is measured by calculating the percentage rate of change of a price index, which is called the inflation rate.
2) Due to the rising cost of basic necessities, my family and I have to think twice about what we want to buy. Nowadays, we would consider our needs first, wants second. In my opinion, I think that this is important. Since some nearby shops sells the basic necessities cheaper than supermarkets like “NTUC” or “Giant” etc, we would choose to go there to purchase our items. This way, we would save on bus fares and also money. Another way we save money is by eating at home and not eating out. Food from outside tend to be more expensive and contain more unhealthy substances such as too much oil, etc. As the basic necessities rise, other items rise as well. A good example would be electricity. Nowadays, the air-conditioner would be replaced with the fan or natural wind. It is only on exceptionally hot weather that we switch in the air-conditioners. Our bathing time would also have to decrease as well. Oil is another problem. We would not go out as often and take public transport such as buses, MRTs(Mass Rapid Transit), etc. This would also help the environment greatly as when more people take public transport, less oil is used; less smoke is “let out”. I think that everyone plays an important role in helping our family to not overspend, thus coping with the current inflation in items.
Tan Li Hui[25] X)
1)Inflation is defined as a sustained increase in the general level of prices for goods and services. It is measured as an annual percentage increase. The value of a dollar does not stay constant when there is inflation. The value of a dollar is observed in terms of purchasing power, which is the real, tangible goods that money can buy. When inflation goes up, there is a decline in the purchasing power of money. For example, if the inflation rate is 2% annually, then theoretically a $1 pack of gum will cost $1.02 in a year. After inflation, your dollar can't buy the same goods it could beforehand.
2)Inflation affects the budget of every Singaporean. Thus, my family starts to scrimp and save and think twice before buying a product. In order to purchase cheaper products, we tend to compare prices of an item from various outlets.
Besides saving money by buying cheaper products, we also save the usage of electricity, as electricity now cost more, due to higher fuel oil prices. Domestic users, for example, will have to pay 21.15 cents for every kWH of electricity, up from 20.49 cents currently. In places such as Singapore, where there is no natural resources like dams and windmills to generate electricity, we will have to rely on crude oil to produce electricity. Hence, when fuel oil prices increase, electricity will also increase. Thus, my family will try to save as much electricity as we can to reduce the amount of electricity bill by using fan instead of air conditioner, off electrical appliances when not in use and off the switch of the charger when not charging hand phones. My family also cuts down the usage of petrol oil due to the rising prices of petrol oil by using the public transport such as Mass Rapid Transit and bus instead of cars.
Instead of buying branded products, my family now buy house brands products due to its reasonable prices. My mother has now turn to frozen meat sold at supermarkets, for example the NTUC Fairprice and Coldstorage, instead of fresh meat sold at the wet market. Although both types of meat are said to taste different and frozen meat tends to taste better, however, to me, both taste the same. But when comparing the prices, frozen meat is much cheaper. This has prove that expensive things are not always the best. In conclusion, we should spend our money wisely and not to splurge.
Jaslyn Tay (8) 2A
1) Inflation is a sustained increase in the prices of goods and services. It is measured as an annual percentage increase. As inflation rises, every dollar you own buys a smaller percentage of goods and services. The value of a dollar does not stay constant when there is inflation. When inflation goes up, there is a decline in the purchasing power of money. After inflation, you can't buy the same goods it could beforehand.
2) Due to the rising costs of basic necessities, families have been trying to cut their coat according to their cloth. Prices of goods and services have been increasing and costs much more money for us to buy. Therefore many families choose to go for household brands which are normally much more cheaper than other imported brands. Most of the shops have increased the prices of their goods and services. Therefore we would compare their prices in different shops and we would choose to buy items from the store that sells their items at the most affordable price. We would consider carefully whether there is a need to spend our money on certain items that we don’t really need to buy. As the price of electricity, petrol and water is also increasing, we would try to conserve them. We would try to turn off electrical appliances when they are not in use and we were often reminded not to waste things. And we would turn off taps when they are not in use and spend shorter time while taking a bath. My parents still continue to send me to school everyday but I have go back home by myself in order to save petrol. We would try to save on petrol by not making unnecessary trips using the car as we can walk there if the place is nearby our house. I feel that if everyone plays a part in coping with the rising costs, we will be able to overcome inflation=].
Jodi Chiam (09) 2A
1)Inflation is a general rise in the prices of services and goods in a particular country, resulting in a fall in the value of money. It can also be said as the rate at which the general rise happens. Inflation occurs when there is a shortage of food resources due to bed whether or because of certain economic issues.
2)Due to the rising cost, whenever we want to buy anything, we will always think twice before making the decision whether should we buy the items. We will also have to cut down the number of times we go out and eat. Eating at home instead of eating out is also good for our health, as a lot of oil is used to cook the food. I still remember during the second week of the holiday, my parents brought my grandparents out for dinner. When we saw the amount of food, it wasn’t too much, but perhaps not really enough for seven people (5 adults and 2 teenagers). When we paid for the food, we found out that one bowl of rice actually cost 50 cents, meaning that its cost had became higher by round 66.6%. This is a huge increase. Now days, my family has also make a habit to calculate the price of an item between a shop and another. Sometimes the cost of a same item is different in two shops. We should also buy household brands as they are of reasonable prices. However I think that if we really want to save more, we should save more on the unnecessary wastages, such as air-conditioners: when it is not really very hot, we should not on the air-conditioner; water: the water used to wash rice could be used to water the plants or to wash the toilets; electricity: when there is no one at home, we should off the computers and laptops. This is the most common bad habit among the teenagers. They leave their computer on even when they are not using it. If we can do our part in saving in all these areas, we will certainly be able save quite a large amount of money. All these will also help to save the earth as less resource would be used.
Wong Jing Ru
2A (31)
1) Inflation is the persistent increase in the level of consumer prices or a persistent decline in the purchasing power of money, caused by an increase in available currency and credit beyond the proportion of available goods and services.
In economics, this relates to supply and demand. If consumers have high demands for goods and services, but the supply of these goods and services does not increase to meet the demands, producers can raise prices and consumers will still purchase the goods and services at higher prices.
2) Inflation hurts our standard of living because we will have to pay more for the same goods and services. But inflation does not impact everything equally, so there are some things (such as gas prices) can double while other things (in our houses) may lose value. For this reason, it makes financial planning more difficult. Inflation is bad because our target will have to keep getting higher and higher to pay for the same quality of life. In other words, our savings will buy lesser, thus we will need to save more. However, everything we buy today costs more, so we have less left-over income available to save.
Due to the rise in prices, my family started to plan our purchases and save more. For example, we would think twice before purchasing a product, whether it is a need or a want to us and sometimes, my mother would only wait until a discount for a product before purchasing it right away. We stop splurging money on our wants, for example chocolates and instead, we purchase apples. A packet of five apples are cheaper than a bar of chocolate. It also serves a second purpose; to be used as offerings to the god, so after we pray, we could eat them and not let them go to waste. Nowadays, my parents would also be more concern on the electricity and water bills. They would always remind me time and again to switch off unnecessary electric items when they are not in use. We would try to bath as quickly as possible, so as to save water and not use the computer for long hours unless necessary.
Ye Wen Qi Leona (32)
Inflation
1) Inflation is defined as a sustained increase in the general level of prices for goods and services. It is measured as an annual percentage increase. As inflation rises, every dollar you own buys a smaller percentage of a good or service.
The value of a dollar does not stay constant when there is inflation. The value of a dollar is observed in terms of purchasing power, which means the real, tangible goods that money can buy. When inflation goes up, there is a decline in the purchasing power of money. For example, if the inflation rate is 2% annually, then theoretically a $1 pack of gum will cost $1.02 in a year. After inflation, your dollar can't buy the same goods it could beforehand.
2) Inflation is “a rise in general level of prices of goods and services over time”. Thank you, Mr. Dictionary.
To me, inflation is when my mum or dad complains about how much they have to pay for things these days compared to the days when they were younger.“ In the past, I could buy this amount of vegetables for only 20¢ and now it actually costs $2!” or “Last time, making a trip to the petrol station to fill the tank would only cost $30.”
Inflation has affected everyone, and my family is definitely no exception. Inflation has made an impact in our lives in many ways, be it good or bad. Initially, when the price of certain things increased, we did not think much of it and our lives carried on as usual. However, as each day went by, the newspapers had headlines blazoned across their front pages screaming, “ Prices of wheat and flour increase!” or “ Vegetables and dairy products increase in price!” and the like, my family members and I began to realise the severity of the problem of inflation. Since then, our standard of livings has dropped a considerable amount. In the past, we could splurge on certain unnecessary items without feeling any guilt. But now, whenever we buy expensive items, we would have to think twice and consider if we really have uses for that particular thing. When it comes to saving electricity, we would switch electrical appliances off whenever they are not in use. On cooler days, we use fans instead of air-conditioners. Also, we use energy-saving light bulbs to save electricity. To tell the truth, I was generally not a very environmentally friendly person because I would throw away things without second thoughts that they could be recycled. But now, I would try to reuse and recycle things whenever I can, saving money and at the same time, saving the environment, a win-win situation.
As much as I dislike the inflation of almost every single item, I realised that humans have this amazing ability to adapt. Everyone I know is thinking of ways to save money to tide over this crisis. In the midst of all these, I have also learnt to treasure the things around me. For instance, the basket of apples on the table hardly caught my attention except when I wanted to grab an apple to eat. Now, whenever I look at it, I would think, “ How glad I am that I could afford these apples”.
Jodi Lau (10)
1) Inflation is a general increase in the prices of goods and services in a country over time. It cost the value of money to drop as one cannot use the same amount of money to buy as many things they could with the amount of money due to the rise in prices. Inflation occurs when there is a change in the supply or demand for money. However, it would be a problem to a country if inflation is rising faster than the income of the people living in the country.
2) Due to the rising prices of food around the world now, my family has no option but to save in everyway we could. To cope with the rising inflation, we would buy household food brands now which are ten to fifteen percent cheaper than other brands. We would also buy frozen meat instead of chilled meat as it is cheaper in price. Now, we consider when we were buying basic necessities. We only buy things that we need and not buy them just for our own leisure. To reduce electricity wastage, my family would now switch off all the electricity appliances when not in use. We would only turn on the air-con when the weather was very warm. Even if we turn on the air-con, we would switch it off at the middle of the night to reduce electricity usage. We would also not leave the computer on stand-by mode when we were going out to have dinner or anything else. This could help us to save up quite a lot of money actually. We also use the broom instead of the vacuum cleaner to clean the house as using broom do not have to use electricity and this could help us in reducing electricity usage. I hope that the government would stop the inflation before many problems arise.
Low Jia Yu(15)
1)The value of a dollar does not stay constant when there is inflation. The value of a dollar is observed in terms of
purchasing power, which is the real, tangible goods that money can buy. When inflation goes up, there is a decline in the
purchasing power of money. For example, if the inflation rate is 2% annually, then theoretically a $1 pack of gum will cost
$1.02 in a year. After inflation, your dollar can't buy the same goods it could beforehand.
Inflation is also a rise in general level of prices of goods and services over time. Although "inflation" is sometimes used
to refer to a rise in the prices of a specific set of goods or services, a rise in prices of one set (such as food) without a
rise in others (such as wages) is not included in the original meaning of the word. Inflation can be thought of as a decrease
in the value of the unit of currency. It is measured as the percentage rate of change of a price index[1] but it is not
uniquely defined because there are various price indices that can be used.Many economists believe that high rates of
inflation are caused by high rates of growth of the money supply.[2] Views on the factors that determine moderate rates of
inflation are more varied: changes in inflation are sometimes attributed to fluctuations in real demand for goods and
services or in available supplies (i.e. changes in scarcity), and sometimes to changes in the supply or demand for money. In
the mid-twentieth century, two camps disagreed strongly on the main causes of inflation at moderate rates: the "monetarists"
argued that money supply dominated all other factors in determining inflation, while "Keynesians" argued that real demand
was often more important than changes in the money supply.
There are many measures of inflation. For example, different price indices can be used to measure changes in prices that affe
ct different people. Two widely known indices for which inflation rates are reported in many countries are the Consumer
Price Index (CPI), which measures consumer prices, and the GDP deflator, which measures price variations associated with
domestic production of goods and services
2)How is the rising cost of basic necessities affecting you and your family members
due to inflation, our family need to scrimp and save.We only buy those we need like daily product,and stop buying
unnecessary stuff.think twice before buying something.To cope, my family buy household brands from giant,NTUC and compare
prices from various supermarkets and go for the cheapest one,as they sell cheaper and affordable items. we waste less
water and electricty,and save them as much as it would lower our heavy bills.We also use fan instead of air-con,use energy
saving-bulbs,switch off eletrical appliances when not in use.for my parent, they choose to take public
buses instead of their cars because petrol are increasing rapidly and the more you use your car, the greater expenditure you
will pay.That is because we the petrol we use are natural resources and it is depleteing.Eventually, the earth would be left
no more natural resources and that is went we are done for.we should recycle those biodegradeble items ad go green to save
our earth.my family cook exactly enough of our shares and we never waste. i eat two big bowls everytime and never left a
single rice lying on my bowl. that is my habit of saving.:)to be frank, my family monthly bill is about $150 per month
which i think is quite good, to consider an adapting-inflation-family.
i can understand that everyone is in a midst of struggling over money due to inflation,so we should start thinking of a way
to conserve those we can.
chew cheng york(34)
1) Inflation is the persistent increase in the level of consumer prices for goods and services. It may be caused by an increase in available currency and credit beyond the proportion of available goods and services. They may be possible after an increase in cost of production, which is cost-pull, or increase in demand or in the supply of money, which is demand-pull.
2) Due to the inflation, my family and I have to kickoff a brand new way of not wasting too much. The price of rice, for example, had been increasing constantly, so my family tend not to use too much of it when cooking, if not risk wasting it. Sometimes, we may think that inflation won't make too much of a difference to our financial status. Nonetheless, some shops are beginning to earn more money by rising the price tags. Therefore we must learn the skill of comparing prices before we purchase. This can lower down the possibility of false advertising. Electricity is one major problem my family have to tackle with. Besides electricity, water usage is another difficulty we must deal with. In electricity, our family used it for granted, but now, we should began saving, likewise for water. For electricity, if we are not using the air-conditioner, we should switch it off. Another example would be switching off the handphone charger when it is not in use. These small amounts of electricity saved may mount up to loads, therefore saving you quite a big sum of money. Also, we must use water with care. We may reuse them, for example after you washed the vegetables, you may want to use it to water the plants or flush the toilet bowl. Even water used to wash the vegetables can be substituted for clean water. So we must look into the 3 R's, which is recycle, reuse and reduce. Also, when buying things, we must think twice if we really need the item. Is it a want or a need. If the item will not do a significant change in our live, then we should not waste our money on that. The precious money can be spent of other things that is worth spending on. This can really do a part in helping you cope with the crisis that is currently happening in the world around us.
Ang Teng Da (33)
1)Inflation is defined as a sustained increase in the general level of prices for goods and services, in other words according to this definition inflation is things getting more expensive.
It is caused by an increase in available currency and credit beyond the proportion of available goods and services.A small amount of inflation can be viewed as having a beneficial effect on the economy.One reason for this is that it can be difficult to renegotiate prices and wages. With generally increasing prices it is easier for relative prices to adjust.
2) When people go the the supermarket and see ever higher prices they know how inflation affects them. But when they are feeling more philosophical they might reason that if all wages and prices increased at the same rate it would all balance out in the end right?
Well yes but in reality it never works that way. Prices of various items all increase at different rates so some people are benefiting while others suffer. Those on fixed incomes suffer the most because the cost of things they are buying increases but their income stays the same. The latest series of price hikes came recently almost days within each other on household necessities like bread, noodle and live chicken (by an average of 20%) – and bus fares by one or two cents.
Because of inflation, we have to think twice about buying things now.Instead of buying food imported from other countries, we have to get house brands to save on the extra money we had to fork out when buying imported brands.We have to take buses instead of cabs now.Everyone is trying to save as much money as possible. We had to try to save elctricity too . My brother and I had to cut down on playing computer games too much. We are also encouraged to use the fan instead of the air con. All these little things will make a big difference. With everyone putting in effort, inflation will no longer be a problem.
oops, left put my name.
Laureen CHUANG(12)
seah xin lu (20)
1) Inflation is defined as a sustained increase in the general level of prices for goods and services. It is measured as an annual percentage increase. As inflation rises, every dollar you own buys a smaller percentage of a good or service.
The value of a dollar does not stay constant when there is inflation. The value of a dollar is observed in terms of purchasing power, which is the real, tangible goods that money can buy. When inflation goes up, there is a decline in the purchasing power of money. For example, if the inflation rate is 2% annually, then theoretically a $1 pack of gum will cost $1.02 in a year. After inflation, your dollar can't buy the same goods it could beforehand .
2)Due to the rising cost of basic necessities , I always heard my parents complaining that everything is expensive and we have to switched to housebrands products in order to save more money . Windows are opened to let in more light to conserve electricity by not switching on lights . No more leaving the computers on for many hours as it waste energy like my mom always complained . My family might even consider of controlling the intake of fast food . Mum nagged at me and my brother for not switching off the lights when we are not using it . And , buy food that we need , not want , examples are tibits , sweets . It will be tough for many of us . Conserve water by not letting it flow when you are brushing or teeth . If i bathed in the toilet and I stayed there for about forty five minutes , my mom will start to yell and ask me to get out quicky as to conserve water . Eat at hawker centers more often than dining at restaurants as it will be much much much cheaper . No more oning air conditioners on a hot day in the day but only in the night as to let us have a good sleep .
seah xin lu (20)
1)Inflation is an increase in general prices for goods and services. To be considered inflation, the rise in prices must be widespread and occur over an extended time frame. Simply put, the rise must reflect changes in the economy as a whole. Inflation reduces the value of money. When inflation is at work, consumers spend more money for the same goods and services they were previously able to purchase at lower prices.
2)Inflation is a crisis that has affected my family a lot. With our moderate income, we could no longer afford the extravagant lifestyles of the past,as the price of staples have soared. There is nothing cheap these days. Eating outside is rarely done and measures such as cutting back on necessities have been taken to react to the economy crisis. Dairy products and groceries have become more expensive, and we feel the pinch when we walk to the cashier. The rise in the basic cost of living has taken a toll on us. We have no idea on how to stop it. Everything is going
up,food,milk,etc. We have to eat, we don't have a remedy, we have to adjust our lifestyles. We have introduced some measures to continue to meet the needs of the family. Firstly, we have slashed our spending on luxuries to make ends meet. We have been hit hard by cutting down on food,entertainment. We have set saving goals and lessened the use of credit cards. Making a family budget, cutting down on the usage of water and electricity, reducing the time of usage of the air conditioner, has also been implemented. I hope this crisis can end soon and electricity prices will plummet as i wish, so that I can live my life as happy as i was before.
Zeng Fan Jun(41)
2A
1)Inflation is a persistent, substantial increase or rise in the prices of both goods and services which are usually as measured by the Consumer Price Index and the Producer Price Index, or it could be a loss of value of currency, when a person will not be able to purchase as much he can with that dollar as he previously could.
2) Because of inflation, my mother tend to keep a look out for items which are on promotions, and buy more of them so it will be more price saving. Also, she tries to purchase less of those not so important foods, like potato chips and other snacks which are not necessary. Other than that, my mother also compares prices between different places. All this has helped saved a lot of money. For my father, he tries to earn more money to foot the bills by working overtime. As for me and my brother, we tried to save more electricity and water, turning off lights, taps, fans and air conditioner when not using them so our parents will not have to pay so much on all the bills, and therefore have more money to spend on food and other necessities. Of course, we too, try our best to save our pocket money, and not ask for extra money or expensive gadgets which are actually not what we need. I hope that everybody can cope with this inflation and also feel that even if there is no inflation, we should save our money too as we do not know when we are going to need them.
ermm , forgot to write name
using lihui's account [:
tan yi wen [27]
1)
Inflation is a rise in general level of prices of goods and services over time. Inflation can be thought of as a decrease in the value of the unit of currency.
High rates of inflation are caused by high rates of growth of the money supply. Lack of inflation is not necessarily a good thing. Inflation is a serious problem for fixed income investors. Inflation is measured with a price index.
2)
Inflation hurts my family standard of living because we have to pay more for the same goods and services. If my parents’ income does not increase at the same rate as inflation, we will find our standard of living declining. Also, inflation does not impact everything equally; for example, some things (such as gas prices) can double while other things (house) may lose value. As a result, it makes financial planning more difficult.
Our target will have to keep getting higher and higher to pay for the same quality of life. In other words, we have to buy lesser things and yet, we have to save more and more. Everything we buy today costs more, so we have less income available to save.
The weekly supermarket shop has seen the biggest inflationary rise, thus, my family have been saving and controlling themselves not to buy too much things. Even though call costs have fallen, the amount the average household spends on telephony – with mobiles and broadband, has risen significantly with some spending more on their mobile alone than they do on gas and electricity. As a result, we have been cutting down the phone calls we made unless necessary.
Joel Yeo Ying Yao (40)
2A
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