Essay On Inflation In South Africa

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In this crisis plagued world, economies all over the globe are experiencing high levels of inflation and South Africa, being no exception to this, faces significant inflationary pressure stemming from within its borders as well as within the international community. Thus, this consequently has an impact on the manner in which individuals carry out their daily activities and influencing the decisions that they make. Hence, this essay will serve the purpose of examining and explaining this complex concept and in doing so highlight the relevance of studying it, learning of its importance and the impact it has in our lives, particularly as citizens of South Africa.

The general idea of inflation is described as the generalised, sustained increase of market prices over a period of time. Hence, in an economy where the general price levels rise, each unit of currency is able to buy fewer goods and services. In other words, it can be said that an increase in general price levels is accompanied by a decrease in buying power.

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