Question

why do people appear agitated and worried with rising prices ?​

Answer 1

Answer:

There are two main causes of inflation: Demand-pull and Cost-push. Both are responsible for a general rise in prices in an economy. But they work differently. Demand-pull conditions occur when demand from consumers pulls prices up.

Answer 2

With regard to the factors contributing to the rise in the general price-level, one may mention that on the demand side the following factors have operated: rapid growth of population, increase in incomes, rising non-development expenditure of the government and increase in money supply.