Question

10. During the first world war a great inflation of occurred​

Answer 1

Answer:

The rate of inflation in the war was huge: prices rose on average by 100 % per year, in other words in total by a factor of 16. Nevertheless, this age was not (yet) one of hyperinflation. Even before the First World War broke out, Austria had been plagued by the phenomenon of rising prices.

Answer 2

The rate of inflation in the war was huge: prices rose on average by 100 % per year, in other words in total by a factor of 16. Nevertheless, this age was not (yet) one of hyperinflation. Even before the First World War broke out, Austria had been plagued by the phenomenon of rising prices.

What caused inflation during first world war?

When the war ended, government agencies removed their controls on the economy. This released pent up demand. People raced to buy goods that had been rationed, while businesses rapidly raised prices they had been forced to keep low during the war. The result was rapid inflation.

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