FACTORS CONTRIBUTING TO PRICE INFLATION


Warning: Use of undefined constant no - assumed 'no' (this will throw an Error in a future version of PHP) in /home/austra01/public_html/overnightessays.us/wp-content/plugins/content-for-money/contentformoney.php on line 162

There have been challenges arising in the price stabilisation of the consumer goods in the market resulting to the inflation of these products due to ever rising prices.FACTORS CONTRIBUTING TO PRICE INFLATION Other identified challenges to this problem were the increase in the exchange rates and also increased costs of production in the markets. This implied that there was a high financial supply and accessibility but the supply of the food, petrol, exchange rates and costs of production was below the required demands in the markets. This meant that there were increased demands than the supply which pulled up the commodity prices.  When the demand increases the prices increases and an increase in the supply implies that there is increase in the demands. The above phenomenon can be explained using the demand pull inflation theory.

Pay to Unlock the Answer!



Moriyama, K. & Naseer, A. (2009) Forecasting inflation in Sudan. New Jersey: Wiley

Nordstrom, A., Roger, S. & Stone, M. (2009) The role of the exchange rate in inflation: Targeting emerging economies. New York: Sage

Shaikh, S. (2010) Business environment. London: Sage