The main cause of inflatation are either excess aggregate demand (economic growth too fast) or cost push factors (supply side factors) December 4, 2017 meaning of this sentences
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Summary of Main causes of inflation Cost-push inflation – For example, higher oil prices feeding through into higher costs. Devaluation – increasing cost of imported goods, and also the boost to domestic demand. Rising wages – higher wages increase firms costs and increase consumers' disposable income to spend more.
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