Causes of inflation?

Inflation is caused by a variety of economic factors such as increases in the supply of money, increased demand for goods and services, supply chain disruptions, and rising production costs. When there is too much money supply in the economy, it leads to an increase in demand and a decrease in the value of money, resulting in higher prices. Additionally, when there is a shortage of goods or services, it can create a bidding war, driving up prices. Supply chain disruptions can also influence inflation, as limited availability of goods can increase demand and cause higher prices. Lastly, an increase in production costs, such as wages or raw materials, can cause inflation as manufacturers pass on the increased costs to consumers.

This mind map was published on 22 April 2023 and has been viewed 77 times.