The gradually rising prices associated with inflation can be caused in two main ways: cost-push inflation and demand-pull inflation. Both are associated with the principles of supply and demand.

Too little supply or too much demand can mean higher prices for everybody. Demand-pull inflation is when growing demand for goods or services meets insufficient supply, which drives prices higher.

Cost-push inflation can be compared with demand-pull inflation. Cost-push inflation occurs when overall prices increase due to increases in the cost of wages and raw materials. Cost-push ...

That mismatch can originate on the demand side or the supply side. Demand-pull inflation occurs when consumers want more stuff than producers can supply. You see this happen periodically in the ...