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Inflation further exacerbates inequalities and affects poor the most. Discuss the policy measures that are needed to ensure that inequalities do not deepen amidst rising inflation.

Topic: Inclusive growth and issues arising from it

5. Inflation further exacerbates inequalities and affects poor the most. Discuss the policy measures that are needed to ensure that inequalities do not deepen amidst rising inflation. (250 words)

Difficulty level: Moderate

Reference: Indian Express

Why the question:

The Wholesale Price Index (WPI) and the Consumer Price Index (CPI) show an upward rising trend, annually, at 13.11 per cent and 6.07 per cent respectively. Inflation is here to stay because it has much to do with the decline in value of the rupee that has fallen to its lowest, which makes imports of oil and gas more expensive.

Key Demand of the question:

To write about the relation of inflation with inequalities and measures need to ensure that inflation does not deepen inequalities.

Directive:

Discuss – This is an all-encompassing directive – you must debate on paper by going through the details of the issues concerned by examining each one of them. You must give reasons for both for and against arguments.

Structure of the answer:

Introduction:

Begin the giving context of by providing a statistic of rising inflation.

Body:

Frist, write about the impact of inflation on inequalities and how it affects poor the most. Cite statistics and examples to substantiate.

Next, write about the policy changes and tweaks that can be brought in by the government to ensure that this does not happen.

Conclusion:

Write a way forward.