Inflation Case

The issue of inflation has been gripping the attention of many citizens through-out the country. The media continues to report on the impacts of inflation in our economy. Therefore, it is of great importance that one has a clear understanding of this economic term since we are all confronted with this saddening reality.

Inflation can be described as a situation whereby there is a sustained increase in the general level of prices for goods and services. Therefore, as inflation rises, every dollar you own buys a smaller percentage of a good or service. This is certainly a reality within the context of the economy of Trinidad and Tobago.

Citizens continue to plead with the government to step in and mitigate the effect of this silent tsunami that is swallowing up the lower class in our society. The basic food items in the supermarkets are now becoming of the reach for many. These items include rice, flour, sugar, milk among many others

The government has stepped in to deal with this economic dilemma however many have given the policies of the government a failing grade. They believe that that these policies have not borne substantial fruit and therefore citizens continue to receive financial blows due to inflation.

The Patrick Manning administration has decided to tackle the issue of inflation from the supply side. To this end, there has been the establishment of several mega farm throughout the length and breathe of Trinidad. The Government has also appointed a high-level Ministerial Committee to accelerate the implementation of decisions agreed to at the National Consultation on Food Prices held in August 2007 The agreed package of measures includes new funding arrangements as well as fiscal incentives for farmers and the establishment of several large state farms. Additionally, the government sought advice for the Cuban government so as to achieve success in this endeavor. The hope of the government is to expand the supply of food items in the country thereby driving the prices of food prices in a downward direction. This is because as supply increases the prices for this good will fall, this is a basis economic theory. It is well established that food prices is labeled as the main