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Despite the fact that inflation increase investment which creates employment of production resources and hence greater output there are indications that discourager savings thereby increasing the risk of holding raw each and reducing the value of money inflation will lead to a fall in the burden of national debt by making a fixed debt amount to lose its purchasing power. During inflationary periods the value of money which is the purchasing power of money Falls inflation increase the earnings of business share holders and other whose income are fixed in money terms but inspite of these there are complained that it reduced the standard of living of the people whose income are fixed thus increasing their cost of education welfare and culture facilities available. This situation however makes it difficult for the poor masses with fixed income difficult to survive in the economy. Inflation will also lead to a balance of payment deficit. The rise in the prices of home goods will make more consumer goods to be imported thereby making the county to spend more foreign currency that what it will received abroad from exportation.


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