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A price hike refers to a sudden increase in the cost of goods and services, affecting both consumers and the overall economy. When prices rise, the purchasing power of consumers diminishes, making it difficult for them to afford essential items such as food, fuel, and housing. This leads to higher household expenses and reduced disposable income, forcing families to cut back on non-essential spending. Consequently, consumer demand decreases, which can slow down economic growth.

Price hikes often result in inflation, where the general level of prices for goods and services increases over time. This can create a vicious cycle, as businesses may raise prices further to cover increased costs, leading to even higher inflation. For low-income households, price hikes can be particularly devastating, as they spend a larger proportion of their income on basic necessities. This exacerbates inequality and can lead to increased poverty rates.

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