Whether the cause whatsoever, the consumer price index and inflation and stretching will have a negative impact on the entire economy. The main effects include: increased prices will increase the cost of production and business, affecting the competitiveness of enterprises and the entire economy.
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High inflation adversely affects especially those with incomes rise up rise of prices, especially those who live on fixed incomes such as pensioners and civil servants. Welfare and their standard of living will be reduced.
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