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we get two types of inflation

demand-pull inflation, this inflation is happened from demand increase, the demand increase, the price gonna increase too. the cpi ( inflation ) index also increase.

another type is cost-push inflation, this type is from cost increase. the wage rate and the price of raw materials increase, the cost of goods and service going up, and the price of goods and services also going up. that's the reason why inflation happened.

hope this can help you

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Wiki User

12y ago
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Wiki User

10y ago

There are many causes for different types of inflation. Some causes include government spending, an increase in public spending, and a drop in aggregate supply.

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Wiki User

12y ago

Because the congress printed hundreds of millions of dollars worth of paper money

that soon lost its value because there was not enough gold and silver to back it

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Wiki User

12y ago

inflation happens because increase and decrease in growth domestic product and also in food it will be happen

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Anonymous

Lvl 1
4y ago

when consumers have more disposable income. A+

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Q: How is inflation caused?
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Related questions

Is inflation caused by high inflation?

no ,but it is caused by econemy


Inflation caused by a rise in per unit production costs is referred to as......?

Cost push inflation.


How much prices of goods and services are rising?

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What are the different kinds of inflation?

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Inflation caused Congress to stop issuing paper money.


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higher wages


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Demand side inflation that is partial increase in the price of some goods have Caused a sharp increase in the price of goods over the decades is because there is under production of goods and a large volume of money is in circulation.


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higher consumer spending


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They caused inflation to rise


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