In some countries, the cost of living is rapidly increasing. what do you think may be the reason for this? what effects might this have on society?

Living costs in some countries are swiftly rising

this

is because the national rate is high.

As a result

, the community's buying capability is weakened.

This

essay will discuss how it has become the main reason and how it affects society's purchasing capability. Increased prices of goods and services are driven by inflation. there are various reasons why inflation happens

such

as an unmanageable increase in the money supply. Indonesian 1998 is an example of a country where the living cost at that time rose greatly

due to

expansion. The nation was unstable, which created an economic crisis.

Consequently

, primary, secondary, and even tertiary needs prices were unaffordable for some populations. A remark and notable effect of expansion is the purchasing capability of the people is weakened. Still in Indonesia in 1998, low to middle-class economy people could not afford basic food needs

such

as eggs, potatoes and rice

due to

their prices in the market. The station was forcing the seller to put an unreasonable price

due to

stabilizing the economy and political situation at that period of time.

Therefore

, only several groups of a community could afford to buy the things they need

as a consequence

of expansion or in other terms, it has lessened their purchasing capacity. Another province that had an experience with

this

issue was Venezuela in 2022 with an approximately three hundred per cent rise rate. In conclusion, maintaining the supply of money in a province is crucial and indisputable;

otherwise

, a country will face the following problems

such

as an economic crisis which affects the society's purchasing power.