Rise in prices of essential commodites is now considered Rise in prices characteristic of developing because the impact of the problem is the rate of proe the increase the real the rse is that in worth of incomes in prices despite the increase actually declines, it difficult for the income figures. This phenomenon makes people meet their needs, despite earning more money. The direct effect of price rise is, therefore, lower the worth of money or its purchasing power, consequently the living standards of the people but Price rise is due to many factors. An important often unrecognised reason, is the changing lifestyles of the people. In the past, when development was less widespread than now, people lived in closed communities which serviced all their needs. These communities, small, self-sufficient and self-sustaining as they were, produced as much of everything that their people needed. There was a near perfect balance between need and availability, or rather between demand and supply; that the question of scarcity and therefore of price rise, never arose. Later, when the needs of the population increased to the extent that communities could no longer service them, scarcity and all the ills associated with it, became common features of society. But despite the disruption of the old balance between demand and supply, and the lessened chances of a revival of the balance, the ideal of a society in which the availability of goods and services exactly match the people's demand for them, is still cherished. The increasing cost of producing goods and providing