ZERO INFLATION AND THE CONSISTENT RISE IN FOOD PRICES

Sarbottam Silwal

Inflation

In economics, inflation is a persistent increase in the general price level of goods and services in an economy over a period of time.

It's usually measured as an annual percentage, just like interest rates

When the general price level rises, each unit of currency buys fewer goods and services

Zero Inflation

Zero Inflation is a state when the economy reaches a state when there is no inflation

Zero inflation is where the economy reach a state of 0% inflation rate.

It is a big achievement for every economy because in the present day it is not at all easy to establish a zero inflation economy.

Advantages

Zero inflation economy enables to lessen the price distortion

Reduces the uncertainty involved in price drift Aids in enhancing the economic growth along

with adding liquid money to the economy

Best example is USA. It had faced a high inflation during the 1970s but after a long effort they could establish an economy that was clear off inflation. They reached a stage of zero inflation. 

Food Price

Food is any substance containing nutrients, such as carbohydrates, proteins, and fats, that can be ingested by a living organism and metabolized into energy and body tissue  

Price is the sum or amount of money or its equivalent for which anything is bought, sold or offered for sale.

Food price is the amount paid to buy certain quantity and amount of food

materials.

Food Price Rise

Reasons:1. Increase in population2. More demand of food3. Less productivity4. Export of food5. Holding by marketeers6. Devaluation of money7. Government policies