Price hike

Price hike or price spiral means the rise of price of daily necessary goods. Today price hike is a common problem in our country. The price of necessary goods is increasing by leaps and bounds. People from all classes of society suffer greatly for price hike. The poor are the worst victim of price hike. The causes of price hike are many. Hoarding is one of the important causes for price hike. People hoard necessary goods for creating artificial crisis in the market and making more profit afterwards. Sometimes they form syndicate and break down the normal flow of supply. Smuggling and low production of necessary goods are also responsible for price hike. Our population is increasing day by day. But the supply of food is not increasing proportionately. For this reason, the supply of goods is less than our demand. So price level rises with the increase of demand. However, necessary actions and proper measures should be taken to handle the situation. Hoarding should be controlled. Smuggling and black-marketing should be stopped. Adequate supply of essential commodities should be ensured. Last of all, government should take necessary steps to remove the illegal business syndicates from the market.