What are the causes of inflation?

Summary
Understanding the underlying factors fueling inflation is crucial in today's economic landscape. Rising prices, a concern for consumers globally, stem from various sources. Demand-pull inflation occurs when demand surpasses supply, driving prices higher. Conversely, cost-push inflation results from increased production expenses, like wages or raw materials. Monetary inflation, influenced by central bank policies, floods markets with excess currency, devaluing money. Structural factors such as supply chain disruptions or geopolitical tensions also exacerbate inflationary pressures. Recognizing these causes empowers policymakers and businesses to implement targeted strategies, mitigating inflation's adverse effects on economies and consumers.
Finance Monthly

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