Inflation is a continuing increase in prices or the rate at which prices increase .
A seasonal shortage of food is not classified as inflation .
There are three situations which can result in inflation .
The first one is the one in which the demand for good and services (and the money available to purchase them ) exceeds the supply available there maybe a large supply of money available for one or more of several reasons because government spending is relatively high or because credit is easily available or because people high disposable incomes (when customers want to spend money on goods and services but there are not enough of them to satisfy the demand , prices rise accordingly .
This often referred to as (demand- pull inflation)
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