Inflation and its impact on living standards is a recurring theme in IELTS Writing Task 2. Based on recent trends, this topic has appeared frequently in past exams and is likely to continue being a popular choice for future tests. Let’s examine a relevant question that closely resembles those seen in actual IELTS exams:
Some people think that inflation has a negative effect on our standard of living, while others believe it can have positive impacts. Discuss both views and give your own opinion.
Analyzing the Question
This question requires candidates to:
- Discuss the negative Effects Of Inflation On Living Standards
- Explore potential positive impacts of inflation
- Provide a personal opinion on the overall effect of inflation
Let’s now look at two sample essays addressing this topic – one aiming for a Band 8-9 score, and another targeting a Band 6-7 score.
Sample Essay 1 (Band 8-9)
Inflation, the sustained increase in the general price level of goods and services, is a complex economic phenomenon that can have both detrimental and beneficial effects on our standard of living. While some argue that inflation primarily erodes purchasing power and financial stability, others contend that it can stimulate economic growth and employment. This essay will examine both perspectives before presenting my own viewpoint.
On the one hand, inflation can significantly diminish our quality of life. As prices rise, the purchasing power of money decreases, making it harder for individuals to afford basic necessities and luxury items alike. This is particularly problematic for those on fixed incomes, such as pensioners, who may find their savings rapidly devalued. Moreover, high inflation rates can lead to economic uncertainty, discouraging long-term investments and potentially triggering a cycle of wage increases and price hikes, further exacerbating the problem.
Conversely, proponents of inflation argue that it can have positive effects on living standards when kept at moderate levels. A slight increase in prices can encourage consumer spending and investment, as people are incentivized to purchase goods before their value depreciates. This increased economic activity can lead to job creation and wage growth, potentially improving overall living standards. Furthermore, inflation can benefit borrowers by reducing the real value of debt over time, making it easier for individuals and businesses to repay loans.
In my opinion, while inflation can have some positive effects when carefully managed, its negative impacts on living standards generally outweigh the benefits. The erosion of purchasing power and the potential for economic instability pose significant risks to individuals’ financial well-being and quality of life. However, I believe that a low and stable inflation rate, carefully monitored by central banks, can contribute to sustainable economic growth without severely compromising living standards.
In conclusion, the effects of inflation on our standard of living are multifaceted and depend largely on its magnitude and management. While it can stimulate economic activity in some cases, the potential for decreased purchasing power and financial instability make it a double-edged sword that requires careful consideration and policy implementation.
(Word count: 345)
Sample Essay 2 (Band 6-7)
Inflation is when prices go up over time. Some people think it’s bad for how we live, but others say it can be good. I will talk about both ideas and give my thoughts.
Many people believe inflation hurts our standard of living. When prices go up, our money doesn’t buy as much as before. This makes it hard to buy things we need, like food and clothes. People with fixed incomes, like retired people, suffer the most because their money becomes less valuable. Also, high inflation can make people worried about the future, which can be stressful.
On the other hand, some experts say inflation can be helpful sometimes. When prices go up a little, it can make people want to buy things now instead of waiting. This can be good for businesses and can create more jobs. Also, inflation can make it easier to pay back loans because the money you pay back is worth less than when you borrowed it.
In my opinion, I think inflation is mostly bad for our standard of living. Even though it might help in some ways, the problems it causes are bigger. It’s hard for people to plan for the future when prices keep going up. I believe it’s better to have prices that don’t change much over time.
To sum up, inflation affects how we live in different ways. While it might have some good points, I think it mostly makes life harder for most people. Governments should try to keep inflation low to help people live better.
(Word count: 262)
Key Writing Tips
When addressing this topic, consider the following:
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Vocabulary: Use a range of economic terms accurately. For higher band scores, incorporate more sophisticated vocabulary such as “erode purchasing power,” “economic uncertainty,” and “monetary policy.”
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Grammar: Utilize a variety of sentence structures. For Band 8-9, include complex sentences and conditional statements. For Band 6-7, focus on clear, well-structured simple and compound sentences.
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Structure: Ensure a clear introduction, body paragraphs discussing both views, and a conclusion with your opinion. Higher band scores require more nuanced arguments and smoother transitions between ideas.
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Examples: Provide relevant examples to support your points. Band 8-9 essays should include more specific and sophisticated examples, while Band 6-7 can use simpler, more general illustrations.
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Cohesion: Use a range of linking words and phrases appropriate to your band level. Higher bands should demonstrate more sophisticated cohesive devices.
Inflation impact on living standards
Essential Vocabulary
- Inflation (noun) /ɪnˈfleɪʃən/ – a general increase in prices and fall in the purchasing value of money
- Standard of living (noun phrase) /ˈstændərd əv ˈlɪvɪŋ/ – the degree of wealth and material comfort available to a person or community
- Purchasing power (noun phrase) /ˈpɜːrtʃəsɪŋ ˈpaʊər/ – the ability to buy goods and services
- Economic growth (noun phrase) /ˌiːkəˈnɒmɪk ˈɡrəʊθ/ – an increase in the amount of goods and services produced per head of the population over a period of time
- Fixed income (noun phrase) /fɪkst ˈɪnkʌm/ – an income from investments that remains the same regardless of economic conditions
- Monetary policy (noun phrase) /ˈmʌnɪtəri ˈpɒləsi/ – the actions of a central bank to influence the availability and cost of money and credit
- Consumer spending (noun phrase) /kənˈsjuːmə ˈspendɪŋ/ – the amount of money spent by households in an economy
- Economic uncertainty (noun phrase) /ˌiːkəˈnɒmɪk ʌnˈsɜːtnti/ – a situation where the future path of the economy is unpredictable
- Wage growth (noun phrase) /weɪdʒ ɡrəʊθ/ – an increase in the amount of money earned by employees
- Financial stability (noun phrase) /faɪˈnænʃəl stəˈbɪləti/ – a condition in which the financial system can withstand shocks without major disruption
In conclusion, the effects of inflation on living standards is a complex topic that requires careful consideration of multiple perspectives. To prepare for potential IELTS Writing Task 2 questions on this subject, practice writing essays that discuss both the positive and negative impacts of inflation, supported by relevant examples and appropriate economic terminology. Remember to structure your essay clearly, use a range of vocabulary and grammatical structures, and provide a well-reasoned personal opinion.
For further practice, consider writing essays on related topics such as:
- The role of government in controlling inflation
- The impact of inflation on different socioeconomic groups
- The relationship between inflation and unemployment
We encourage you to write your own essay on the given topic and share it in the comments section below. This exercise will help you apply the tips and vocabulary provided, and potentially receive feedback from other learners and instructors.
