Causes Of Inflation In Economics

Inflation occurs when the prices of goods and services increase in an economy. The ability of a currency to purchase the same quantity of goods decreases its value during periods of inflation. Inflation is triggered by a variety of factors. Among the primary causes of inflation is cost-push inflation, as the name suggests, in this, the production cost is raised, pushing the prices of the products up. The reason behind this is an increase in the production rate due to increased consumer demand.

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