Inflation Causes Stock Illustration Illustration Of Government 259250343 Inflation causes. inflation stalling the economy and decreasing consumers` purchase power. Causes of inflation demand pull inflation: occurs when demand for goods and services exceeds supply, often driven by economic growth. cost push inflation: arises when the costs of production increase (e.g., wages or raw materials), leading producers to pass on these costs to consumers through higher prices. built in inflation: this is the result of adaptive expectations, where workers demand.
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