Inflation is a recurring topic in IELTS Writing Task 2, often appearing in questions related to economics and personal finance. Based on past exam trends, we can expect this theme to remain relevant in future tests. Let’s examine a specific question that has appeared in recent IELTS exams and is closely related to our key topic:

Some people think that inflation has a negative impact on our daily lives, while others believe it can bring some benefits. Discuss both views and give your own opinion.

This question directly addresses the impact of inflation on everyday life, making it an excellent example to explore how inflation affects financial decisions. Let’s break down the question and provide sample essays for different band scores.

Question Analysis

This question requires candidates to:

1. Discuss negative impacts of inflation on daily life
2. Explore potential benefits of inflation
3. Provide a personal opinion on the overall impact of inflation

A well-structured response should include an introduction, two body paragraphs discussing both viewpoints, and a conclusion that summarizes the main points and presents the writer’s opinion.

Sample Essay 1 (Band 8-9)

Inflation, the general increase in prices over time, is a complex economic phenomenon that profoundly influences our daily lives. While some argue that it primarily has detrimental effects, others contend that it can yield certain advantages. This essay will examine both perspectives before presenting my own viewpoint.

On one hand, inflation can undoubtedly have negative consequences for individuals and households. As prices rise, the purchasing power of money decreases, making it more challenging for people to afford basic necessities and maintain their standard of living. This is particularly problematic for those on fixed incomes, such as retirees, who may struggle to keep pace with escalating costs. Moreover, inflation can erode savings and investments, potentially derailing long-term financial goals such as homeownership or retirement planning. These effects of inflation on consumer credit can lead to increased borrowing and financial stress for many families.

On the other hand, proponents argue that moderate inflation can bring certain benefits to the economy and, by extension, to individuals. A controlled rate of inflation can stimulate economic growth by encouraging spending and investment, as people are motivated to purchase goods before prices increase further. This increased economic activity can lead to job creation and wage growth, potentially offsetting some of the negative impacts on purchasing power. Additionally, inflation can benefit borrowers by effectively reducing the real value of debt over time, making it easier to repay loans such as mortgages.

In my opinion, while inflation can have some positive effects in certain circumstances, its overall impact on daily life tends to be more negative than positive for the majority of people. The challenges it poses to budgeting, saving, and maintaining financial stability outweigh the potential benefits of economic stimulation. However, I believe that the key lies in maintaining a low and stable rate of inflation, which can provide the benefits of mild economic stimulus without severely impacting individuals’ financial well-being.

In conclusion, inflation is a double-edged sword that affects our everyday financial decisions in complex ways. While it can promote economic growth and benefit some groups, its negative impacts on purchasing power and long-term financial planning are significant. Policymakers must strive to balance these factors to ensure economic stability and protect citizens’ financial security.

Inflation's impact on everyday financial decisions

Sample Essay 2 (Band 6-7)

Inflation is a big topic in economics that affects how we live our daily lives. Some people think it’s bad for us, while others see some good points. In this essay, I will talk about both sides and give my opinion.

First, let’s look at why inflation can be bad. When prices go up, our money doesn’t buy as much as before. This makes it hard for people to buy what they need, especially if their salaries don’t increase too. For example, if food and gas prices go up a lot, families might have to cut back on other things they want to buy. Also, people who have saved money might see its value go down over time, which is not good for their future plans.

However, some people say inflation can be good in some ways. When prices are going up a bit, it can make people want to buy things now instead of waiting. This can help businesses make more money and maybe create more jobs. Also, for people who have borrowed money, inflation can make it easier to pay back their loans because the money they pay back is worth less than when they borrowed it.

In my opinion, I think inflation is mostly not good for everyday life. Even though it might help the economy in some ways, it makes life harder for most people. It’s difficult to plan for the future when prices keep going up, and it can be stressful for families trying to manage their money.

To sum up, inflation affects our lives in different ways. While it might have some benefits for the economy, I believe its negative effects on our daily financial decisions are more important. Governments should try to keep inflation low so that people can manage their money better and plan for their future.

Sample Essay 3 (Band 5-6)

Inflation is when prices go up over time. Some people think it’s bad for us, but others say it can be good too. I will write about both ideas and what I think.

Bad things about inflation:

1. Things cost more money
2. Our savings don’t buy as much
3. It’s hard to plan for the future

These problems make life difficult for many people. When food and clothes cost more, families have less money for other things they want or need.

Good things about inflation:

1. It can make the economy grow
2. People might get pay raises
3. It can be easier to pay back loans

Some people say these good things help everyone in the long run. They think a little bit of inflation is okay for the country.

I think inflation is mostly bad for daily life. It makes it hard for people to buy what they need and save money. Even if it helps the economy sometimes, it causes problems for normal people.

In conclusion, inflation changes how we make decisions about money every day. While it might have some good points, I believe it causes more problems than it solves for most people.

Explanation of Band Scores

Band 8-9 Essay:

• Task Achievement: Fully addresses all parts of the task with a well-developed response.
• Coherence and Cohesion: Logically organized with clear progression throughout.
• Lexical Resource: Wide range of vocabulary used with flexibility and precision.
• Grammatical Range and Accuracy: Wide range of structures used accurately and appropriately.

Band 6-7 Essay:

• Task Achievement: Addresses all parts of the task, though some aspects are more fully covered than others.
• Coherence and Cohesion: Information and ideas are generally well organized with clear overall progression.
• Lexical Resource: Sufficient range of vocabulary for the task, with some less common lexical items used.
• Grammatical Range and Accuracy: Mix of simple and complex sentence forms with generally good control.

Band 5-6 Essay:

• Task Achievement: Addresses the task only partially, with limited development of ideas.
• Coherence and Cohesion: Information and ideas are arranged coherently, but there may be a lack of overall progression.
• Lexical Resource: Limited range of vocabulary, but this is minimally adequate for the task.
• Grammatical Range and Accuracy: Limited range of structures with some attempt at complex sentences.

Key Vocabulary to Remember

1. Inflation (noun) – /ɪnˈfleɪʃən/ – A general increase in prices and fall in the purchasing value of money.

2. Purchasing power (noun phrase) – /ˈpɜːrtʃəsɪŋ ˈpaʊər/ – The ability of a currency to buy goods and services.

3. Erode (verb) – /ɪˈroʊd/ – To gradually destroy or diminish.

4. Stimulate (verb) – /ˈstɪmjuleɪt/ – To encourage or promote activity or development.

5. Policymakers (noun) – /ˈpɒlɪsiˌmeɪkərz/ – People responsible for making policy, especially in government.

6. Double-edged sword (idiom) – /ˌdʌbəl ˈedʒd ˈsɔːrd/ – Something that has both positive and negative effects.

7. Budget (noun/verb) – /ˈbʌdʒɪt/ – An estimate of income and expenditure for a set period of time.

8. Financial stability (noun phrase) – /faɪˈnænʃəl stəˈbɪləti/ – The condition in which the financial system can withstand shocks without major disruption.

9. Economic growth (noun phrase) – /ˌiːkəˈnɒmɪk ˈɡroʊθ/ – An increase in the amount of goods and services produced per head of the population over a period of time.

10. Fixed income (noun phrase) – /fɪkst ˈɪnkʌm/ – A type of income that does not change over time, such as certain pensions or interest from bonds.

Impact of inflation on consumer behavior

Conclusion

Understanding How Inflation Impacts Everyday Financial Decisions is crucial for IELTS candidates, as it’s a topic that frequently appears in Writing Task 2. The sample essays provided demonstrate different levels of writing proficiency and approaches to addressing this complex economic issue. To further improve your skills, try writing your own essay on this topic or related themes such as:

• The role of government in controlling inflation
• Long-term effects of high inflation on a country’s economy
• Strategies for individuals to protect their savings from inflation

Remember to practice regularly and focus on developing a clear structure, using relevant vocabulary, and presenting balanced arguments. Feel free to share your practice essays in the comments section for feedback and discussion with other learners.