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Demand-Pull Inflation (e.g increased number of people desire to purchase limited resources Emerging economies and countries like China have raised their standard of living requiring resources like oil. The increase in the demand for oil increases the price of the good)

Cost-Push Inflation (e.g A supply shock which could be intentional or due to a natural disaster An earthquake disrupts oil or food production).

Built-In Inflation (e.g As people's wages increase so do prices and vice-versa.)

Unemployment Changes (e.g As unemployment decreases, inflation increases as more people desire limited goods in an economy.

Monetary Policy (i.e Expansionary monetary policy could lead to inflation.

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12y ago
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Anonymous

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3y ago

Consumers demand goods faster than can be supplied

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Q: What are the main causes of inflation?
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