Blossary – Causes of Inflation

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Causes of Inflation

Inflation is the devastating condition when prices just keep going up, eating away at your standard of living.

Category: Business

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Expansion of Money Supply

Over expansion is also another cause; the money supply is not just cash, but also credit, loans and mortgages. When loans are cheap, then there will be too much money chasing too few goods, creating ...

Cost-Push Inflation

This isn't as common as demand-pull inflation, because it only occurs when there is a shortage of supply combined with enough demand to allow the producer to raise prices. Wage inflation can ...

Demand-Pull inflation

Demand-pull inflation is the most common. It's is when demand for a good or service increases so much that it outstrips supply. If sellers maintain the price, they will sell out.