What are the causes of inflation?

There are several causes of inflation, including:

1. Demand-pull inflation: This occurs when there is an increase in aggregate demand for goods and services, leading to an increase in prices. It can be caused by factors such as increased consumer spending, government spending, or expansionary monetary policy.

2. Cost-push inflation: This type of inflation occurs when there is an increase in production costs, such as wages or raw material prices. Higher costs lead to higher prices for goods and services.

3. Built-in inflation: This refers to inflation that is caused by expectations of future price increases. For example, if workers expect higher wages in the future, they may demand higher prices for their goods and services, leading to inflation.

4. Monetary inflation: This occurs when there is an increase in the money supply in an economy. When there is more money in circulation, it can lead to higher prices as people have more money to spend.

5. External factors: Inflation can also be influenced by external factors such as changes in exchange rates, import prices, or global commodity prices. For example, if a country's currency depreciates, it can lead to higher import prices and inflation.

It is important to note that inflation is often influenced by a combination of these factors and can vary in intensity and duration depending on the specific circumstances of an economy.