Inflation is the rate at which the general level of prices for goods and services rises, eroding purchasing power.
Several factors can cause inflation.
Demand-pull inflation occurs when demand for goods and services exceeds their supply.
Cost-push inflation happens when the costs of production increase, leading businesses to raise prices.
Additionally, inflation can result from monetary policies, such as when a central bank increases the money supply.
External factors, such as higher import prices or global economic trends can also influence inflation.