In general, inflation is bad thing and it has been around for some times now. Inflation is worst to extent that it can cause hyperinflation. A lot of things are affected hugely. Inflation makes standard of living difficult. Makes it so difficult in the sense that, your normal standard of living before the inflation will diminish due to the inflation or hyperinflation because at first, the money will lose its value. Imagine, how much things you can actually buy with $10 in the pre inflation and things you can buy with the same amount of dollar during the inflation. This simply because the cost of good is at high rate.
Inflation and business profit.
One of the people that feel the impact of inflation are business owners and if care is not taken with intensive care it might leads to profit reduction.
There are some businesses that the profit will be reduced if inflation hits the world economy. This is on a personal experience, I run birds ok a small scale business level. The inflation hits the ground running late last year and ever since the price of goods have been increasing. I buy feed for my birds,then the price of feed is times of the initial price. From $10 to $22 for a bag of feed.
The issue on ground now is, the amount of we are spending on feeds to feed these birds is very high but the price that customers are buying these broiler birds seems not to increase with the inflation of price of feeds for the birds. The customers do not want to shift ground on the price of good they were broiler birds.
According to the famous economist Irving Fisher probably said “In steadiness of real income, or purchasing power, a list of diversified common stocks surpasses bonds”.
That's one of the major issues I am facing right now. The amount I am spending on feeding these birds doesn't really correlates or not par with the price I am selling these birds. Thereby it's cutting down my business profit.
