Many people complain when the cost of basic goods increases due to the
flow-on effects on living expenses. however, shop owners and resellers are
ultimately in control of cost-pricing, leaving the consumer with limited, if any, say
in the matter.
whilst beneficial to companies and shop owners, there are claims stating that
inflation is one of the main aggravating causes of political and socio-economic
instability within the country. due to increases in cost of living also not being
reflected in wage raises, or lack thereof, crime rates would also increase as a
result of poverty and basic goods being simply unaffordable.
the factors contributing to the price increase of basic goods include:
rising costs of fuel sources (affecting overall production
and transportation costs);
greediness exhibited by companies responsible for cost-pricing.
as an example, even with the reduced fuel prices imposed by the
government, the prices of goods remain at an all-time high;
consumers insisting on purchasing the same type (or brand)
of goods despite the higher price.
the lack of emphasis to produce food and goods in-country.
there are a few suggestions that can be considered in order to curb the effects
of a higher cost of living on society. this includes equipping members of society
with good money management skills, enabling them to spend smart and save.
another aspect is to increase agricultural production and to utilise uninhabited
land. in addition, steps should be taken to make popular and reinvigorate the
career of agriculture and farming as a good source of income. as a precaution,
international trade agreements must be made to effectively cooperate between
neighbouring countries to reduce import tax, to minimise the price-
increase of imported goods.
therefore, it can be extrapolated from this that prices of basic goods and
services will inevitably rise in accordance with international trading agreements,
cost of living and other external, as well as internal, factors. however, the effects
of it on society can be mitigated through thrifty and savvy managing of
consumer spending habits. besides the consumers, the responsible parties must
also take part and do what is necessary to curb the price hike and control
the market situation to the extent possible.
1. every time the price of goods and services increase, which party is
affected the most?
a. government
b. end consumer
c. shop owners and resellers
d. low-income earner
2. what would be the best description of the word “famine”
a. crime rate
b. poverty
c. scarcity of food
d. high cost living
3. consumers could typically manage price increases if they:
a. work overtime
b. take 2-3 jobs
c. adjust their lifestyle
d. hunger strike
4. below are among the reasons of a price hike
i. increase of fuel cost
ii. brand obsession
iii. consumers’ bad spending habits
iv. insufficient production of crops
a. i & ii
b. ii & iii
c. i, ii & iii
d. all above
5. below are suggestion mentioned in article to reduce effect of
price hike, except
a. money management
b. increase import duty
c. optimized the use of land
d. produce more in house goods