BEWARE OF FAKE INSTITUTES WITH SIMILAR NAMES. blank    blank
banner

Dealing with the Cost of Living Crisis



  Apr 27, 2024

Cost of Living Crisis



Q1: What is a cost-of-living crisis?

A cost-of-living crisis occurs when the price of essential items like food, energy, and housing increases faster than the price of labor, causing people to lose their standard of living.

Q2: What are the causes of cost-of-living crisis?

The cost of living crisis has been affecting people worldwide since late 2021, and is due to a number of factors, including climate change, the pandemic, Russia’s invasion of Ukraine, weak institutions, and fragile sociopolitical environments. These factors have disrupted the production and distribution of food and energy, causing costs to rise.

Q3: How does the cost-of-living crisis affect people?

The cost-of-living crisis affects people equally, but those on lower incomes are disproportionately impacted. Financial stress increases people’s risk of poor mental health. For example, a survey in November 2023 found that 31% of adults felt anxious in the last month due to their financial situation.

Q4: What measures can be taken to mitigate the cost-of-living crisis?

Labor market and social policies can help protect living standards, and share the burden from high inflation between employers, households, and governments. Some policy areas that are key as countries respond to the cost of living crisis include minimum wages, income support, and pensions.

Q5: How is the cost-of-living crisis affecting India?

The cost of living in India has surged in recent years, posing significant challenges for its citizens. Indian manufacturers are running out of capacity to absorb rising input costs, with an increasing number passing it along to consumers in an economy already grappling with Asia’s third-fastest inflation and an uneven recovery. The Indian government has taken several measures, including restricting exports of essential food items and announcing tax cuts on imports of edible oil. However, more comprehensive social protection programs and policy interventions are needed to effectively address this crisis and protect the living standards of the population, especially those on lower incomes who are disproportionately impacted.


SRIRAM's

 


Share:
 

Get a call back

Fill the below form to get free counselling for UPSC Civil Services exam preparation

 
UPSC DAILY CURRENT AFFAIRS

 
CHANDRAYAAN-3: A YEAR of ACHIEVEMENTS
 
VIZHINJAM: INDIA’S FIRST DEEP-WATER TRANSSHIPMENT PORT
 
‘AANKH MICHOLI’
 
CHINA FACTOR IN INDIA-RUSSIA RELATIONS
 
CVF and climate finance negotiations
 
CBI JURISDICTION AND STATE CONSENT
 
Beej Utsavs (Seed Festivals)
 
SILK ROUTE THROUGH KALIMPONG AND SIKKIM
 
RHODODENDRON NIVEUM, THE STATE TREE OF SIKKIM
 
OPERATION DHANUSH NEAR LOC
 
French Revolution and India
 
RBI’S MONETARY POLICY STANCE
 
French Revolution and India
 
MUSLIM WOMEN UNDER SECTION 125 OF CRPC:
 
BASTILLE DAY