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.
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