I still remember, as a child, when my father used to buy the monthly household ration for about RO 70 — and that was enough to sustain a family of six. His monthly income then was roughly RO 365, and life was simple, predictable, and content.
Today, if you ask whether a family of six can survive on the same income, the answer is an obvious and painful “No.” Prices have exploded, the value of money has evaporated, and ordinary people struggle to keep up with a system that seems designed to fail them.
Inflation, in economic terms, is the persistent rise in the general price level of goods and services over time, leading to a decline in the purchasing power of money. But in truth, inflation is not merely an economic event — it is a political one, shaped by decisions made by policymakers, central banks, and the corporate elite who benefit from its hidden mechanics.
Economists may explain it as the result of excessive money supply, cost-push pressures, or demand-pull factors, yet behind every price increase lies a deeper story — one of control, inequality, and political manipulation.
According to the monetarist theory by Milton Friedman, “Inflation is always and everywhere a monetary phenomenon.” When governments print more money than the economy produces, prices inevitably rise. Central banks often inject liquidity into the system under the guise of stimulating growth. But who benefits? Mostly companies and asset owners, not wage earners.
Ordinary families find their savings devalued while the wealthy see their investments grow. The same imbalance exists globally — the system rewards those who already possess capital and punishes those who live on fixed incomes or daily wages.
Another explanation comes from the cost-Push theory, which attributes inflation to rising production costs — like wages, energy, or imported materials. Yet, many of these “costs” are controlled by global monopolies and politically connected corporations. When oil prices are manipulated or supply chains are deliberately disrupted, it’s not market dynamics at play — its politics dressed in economic language.
Meanwhile, demand-pull inflation, when aggregate demand exceeds supply, is often used by policymakers to justify raising interest rates. Central banks tighten monetary policy, claiming to “cool down” the economy. However, in practice, this punishes the poor who rely on credit for survival, while the rich have the cushion of accumulated wealth.
Inflation is not just an unintended consequence of market behavior; it is also a deliberate political tool. When governments are burdened by debt, a little inflation helps them. Prices rise, wages rise slightly, and debts become easier to repay in “cheaper” money.
It’s a silent tax on the people, imposed without legislation or consent. The irony is that politicians publicly vow to “fight inflation” while privately relying on it to reduce their fiscal burdens. In capitalist economies, inflation becomes a strategy of profit maximisation. Corporations raise prices faster than their costs rise, using inflation as an excuse.
During the global inflation surge of 2022–2023, many major companies recorded their highest profits in decades, while consumers suffered the most painful price hikes. Even the International Monetary Fund reported that over 45 per cent of inflation during that period was due not to rising costs, but to profit markups.
Policymakers in both developed and developing economies have failed to address inflation because they are entangled in the same system that breeds it. The capitalist structure rewards those who hold assets — real estate, stocks, commodities — and penalises those who live paycheck to paycheck.
When central banks raise interest rates to “fight inflation,” borrowing costs rise for small businesses and ordinary families, while wealthy investors shift their portfolios and continue to benefit. It is a cycle that protects capital while exploiting labour. The so-called “trickle-down” economics, which assumes that enriching the elite will eventually benefit the poor, has proven false time and again. Instead, we now witness “trickle-up inflation,” where prices rise faster than wages, and the burden climbs from the poor to the rich — except the top never pays.
Under capitalism, inflation is not an accident; it is a symptom of greed institutionalised. The market, left unregulated, does not serve humanity — it serves capital. The capitalist state, instead of acting as the protector of its citizens, becomes the guardian of corporate profits. Inflation thus becomes an invisible machine of wealth transfer — from the poor to the rich, from labour to capital, and from the citizen to the state.
Karl Marx had already warned that capitalism thrives by creating artificial scarcity and inflating the value of commodities beyond their real worth. Today, his warning echoes in every supermarket and fuel station. The world produces enough for everyone, yet millions cannot afford basic necessities because prices have divorced from moral and human value. Inflation, therefore, is not just a measure of economic inefficiency; it is a reflection of moral decay, where human welfare is secondary to market returns.
The fight against inflation cannot be treated as a technical issue to be managed by economists in luxurious offices. It is a struggle against a moral and political failure — a system that sacrifices human dignity at the altar of profit. When policymakers become shareholders, when regulators serve lobbyists, and when economists defend corporate interests instead of public welfare, inflation will persist as a wound in the lives of ordinary people.
The poor will keep paying for the luxury of the rich, and society will keep pretending it is progress. Until economic systems are built on fairness, ethics, and social balance, the prices of commodities will keep rising — and the value of humanity will keep falling.
Mohammed Anwar Al Balushi
The author works at Middle East College
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