Causes of ongoing inflation

Inflation persists due to various economic factors. One significant cause is demand-pull inflation, where demand for goods and services exceeds supply. This leads to increased prices as businesses take advantage of high demand. Another cause is cost-push inflation, where rising production costs, such as wages and raw materials, lead to higher prices. Additionally, inflation can be fueled by excessive money supply by central banks, causing a decrease in the value of money. Government policies, like high taxes and tariffs, can also contribute to ongoing inflation. Lastly, inflationary expectations play a role, as people anticipate price increases and adjust their behavior accordingly, creating a self-fulfilling prophecy.
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