What factors affect the inflation rate of a country?

Answer 1

There is many factors but i will try to state some of them

1.The demand for an item is much more than the supply.

2.The economy and the rarity of geting the resources to sell

3.The ammount of money in the comunity For example items cost more in Cali than Arizona

4 The historical importance or age for example Michael Jackson stuff is more money now because of michaels death also antiques

There you go hope i helped

Answer 2

This is not the "official" politically correct answer but it is the true answer. In spite of what you may hear. The main thing that causes inflation is "how much money the feds print".

The wealth of a nation is made up of two things, one; the workforce, which represents the kinetic (active) energy in society and two; all the goods, products, cars, houses, books, planes, trains and tubes of toothpaste that everyone has. This represents the (stored energy) in society. It is everything that humans put a value on. These two factors change slowly as; one, the population increases and two, more products are created faster then the old ones degrade and become valueless.

So, since the amount of kinetic and stored energy in society stays about the same why is there so much variation in inflation? In fact the two factors I mention above should actually cause reverse inflation but we always have positive inflation, why? I can explain it like this -- you have X energy in society and Xdollars to represent the X amount of energy, then if you go and print more money! Now, you have more dollars then before but about the same amount of goods and workforce! You have Xdollars + (new dollars printed) to represent the energy in society. This means the dollar is now worth maybe 98 percent of what it was worth before the last printing of money depending on how much they print or how soon they print it. If they printed the same amount of money as they take out of circulation (old bills being burned because they are torn or whatever), we should have about 0% inflation.

Inflation is created and controlled by the Federal Reserve which are run by private banks owned primarily by the Rothschilds and their cohorts, I mean partners. Inflation, I can assure you is done for the benefit the bankers and wealthy, not us but that's another story. And yes, the US dollar is being devalued on purpose, I presume this is done primarily because they want to bring in the new Amero currency but there are probably other reasons as well.

Answer 3

pla