Impact of Inflation on Work Performance

Ezek Martins U.

Department of Management Kampala International University Uganda

ABSTRACT

Inflation is an increase in general level of goods and services over a given period, resulting to a fall in the purchasing capacity of the fixed wages and income earners. The trade-off between inflation and performance is that, the increase in the prices of commodities reduces consumer‘s marginal propensity to save, which adversely affect the peoples’ standard of living. Inflation in Nigeria, has led to the obvious devaluation of the naira and this has grossly reduced the value of fixed income earners. Inflation is anti-workers’ economic growth and prosperity because it allows for arbitrary increase of prices of goods and services to the detriment of workers’ fixed income even when it is glaring that their purchasing power is being reduced persistently and that eventually erodes their propensity to save. In other words, the purchasing power of a given amount of money will be smaller over time when there is inflation in the economy. Inflation at this instance can therefore be described as a cankerworm that eat up the income of fixed earners and as such affects drastically the standard of living of citizens. This, oftentimes brings about frustration and anger due to the inability to attend to family needs and cope with the high cost of transportation to work, buying of food items to feed, paying of electricity or medical bills, renewing of house rent and other issues of utmost importance among others. This paper therefore appraised the impact of inflation on workers performance.

Keywords: Inflation, Performance, Adverse, Economy, Standard of Living

CITE AS: Ezek Martins U. (2024). Impact of Inflation on Work Performance. RESEARCH INVENTION JOURNAL OF CURRENT RESEARCH IN HUMANITIES AND SOCIAL SCIENCES 3(1):14-19.