Who Gets Profited from Inflation?
Not everyone suffers a loss due to inflation, there are many who get profited from it and mainly the investors and stakeholders.
- Investors– Investors enjoy a great profit due to inflation as the price of their assets and investments multiplies with an increase in the rate of inflation. For example, for an investor who has bought some precious metal or a piece of land years back, at present its rate has been multiplied significantly.
- Share Holders– It’s a usual trend in the stock market that the prices of stocks go up with the time and thus as the rate of inflation increases the prices of the stocks also increase thus generating a decent profit for the shareholders.
- Construction Companies– Construction and house building companies also enjoy a great profit with the inflation as they build the buildings as per the current rates but then sell them at higher prices after some years when the rate of inflation has been increased.
- Wholesale suppliers and large distributors– It has been observed that the large distributors and the wholesale suppliers hold the supply to increase the prices of goods. So that they can higher profit by selling when the demand rises and supply shortfalls.
Causes of Inflation
Inflation has a deep impact on the livelihood of the people living in any nation as the prices of all basic necessities increase with inflation. The prices of certain commodities increase with time but whenever there is a huge increase in the prices of basic commodities within a lesser period of time then it can be said that the nation is under inflation. However, there is not always a single reason for inflation there can be multiple reasons behind it. Also, it always doesn’t come with a loss for everyone sometimes it also results in profits for many people.
Table of Content
- What are the causes of Inflation?
- Major Causes of Inflation
- Who Gets Profited from Inflation?
- FAQs on Causes of Inflation