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Inflation – Causes and Factors

Inflation refers to a general increase in prices resulting in a decrease in the purchasing value of money. Economists like to say it results from “too many dollars chasing too few goods”. This writing is intended to be a look at how inflation is measured and the major contributing factors – supply and demand:

  1. Price Index Measurements – Each month the Bureau of Labor Statistics (BLS) reports the Consumer Price Index (CPI) which is also referred to as the rate of inflation … Read More >>
  2. Demand-Pull Inflation – When the demand for goods and services exceeds supply, higher prices result. This is referred to as ‘demand-pull inflation’  … Read More >>
  3. Cost-Push Inflation – Cost-push inflation refers to a decrease in the aggregate supply of goods and services driven by increased production costs … Read More >>

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