Economists say that there are 3 major causes of inflation. They are: Cost-Push Inflation Demand-Pull Inflation An increase in the Money Supply https://youtu.be/UMAELCrJxt0 What is Cost-Push inflation? As the cost of raw materials or wages increases it causes producers to be forced to increase the cost of their products in order to be able to cover their costs of production and a reasonable profit. This results in a “snowball effect” as these new products raise the prices of other products. But that leads us to the “chicken or the egg” question. What caused the cost of raw materials or wages to rise in the first place? It is possible for foodstuffs to be in short supply due … [Read more...]