Inflation is sustained rising of prices above the usual baseline over time. Inflation can be caused by several things: - **Decrease in supply** -- If the supply of goods in the economy decreases, prices will rise because things are more scarce. For example, the supply chain issues during and after the pandemic contributed to rising prices. - **Increase in production costs** -- If it costs more to make products, companies will try to pass this cost off to consumers. - **Increase in demand** -- If the market demands more goods and services than are available, prices will rise. - **Increase in the money supply** -- If the amount of money in circulation in the economy (i.e. the [[money supply]]) increases, monetary inflation can result. - **Expecting inflation** -- The mere suggestion or expectation that prices might rise could set off a chain reaction that actually does cause prices to rise. See also: [[plutocracy]], [[consumerism]], [[globalization]], [[free markets]], [[✳️ Dictionaries Home]]