Inflation has hit the world and affected the lives of common people in terms of economic lifestyle, behavior, and social and religious activities. The hike in petroleum prices has hit human life from all perspectives. With a significant effect on trade activities, inflation has not only changed the global trade patterns but also introduced new challenges to global trade.
The infliction caused by Inflation can be reprimanded by the below-mentioned actions and behaviors:
Purchasers of merchandise have embraced web-based shopping and requests from websites, and portable applications as opposed to genuinely visiting the stores and outlets. The pattern of mass purchasing is common while keeping a support load of buffer stocks. Particularly for durable and cold stockpiling things, purchasers have liked to purchase more to keep away from deficiencies and issues if there should be an occurrence of Lockdown. While reducing the tendency of bulk buying, household consumers must follow the JIT (Just in Time) principle of the supply chain and reduce stock levels of household consumable items. This means less investment in holding inventory buffers and ultimately reducing holding costs.
Purchasers can reduce the habit of buying from super stores and shopping marts as it leads to more purchases of goods and ultimately the money supply ends up in a few hands of oligopoly market of super stores rather than small vendors of goods and services. The government should discourage hoarding of goods during inflation times and ensure a smooth and efficient supply of merchandise and goods in markets.
For luxury items, consumers should switch to local and expensive substitutes; this will ultimately put less pressure on the demand for luxury items.
For traveling purposes, the concept of pool rides can be adopted via using smartphone mobile applications through social media groups such as WhatsApp to club people traveling in the same vicinity or nearby in form of groups and sharing fuel costs among each other.
For reducing education costs, schools and colleges can adapt to modern methods of teaching by using modern technology and software. Accepting modern gadgets such as Tablets, Smart Phones in-class lectures would ultimately lead to a paperless environment and reduce the cost of importing paper from international markets.
Working from home should be encouraged to reduce carbon footprints and ultimately save fuel costs. For this purpose, flexible timings can also be introduced to divide the workload according to requirements.
Government expenditures need to be strictly monitored and alternate income generation and revenue creation ventures should be looked upon. Individuals need to work out any additional income generation modes such as rental incomes from assets and proving services in their leisure times.
Households and Industries need to reduce the demand for electricity from the government in-country, by relying less on government plans and generating indigenous electricity through solar panels and wind turbines for households and factories. This way the total shortfall between the supply and demand of electricity generated via oil can be substantially decreased. Government can provide loans to small and medium enterprises working on the production of equipment for the alternate generation of electricity.
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