Whenever there is an ineuality between demand and supply for a product, obviously the price for that product moves up leading to rise in inflation.
The central bank of any country can also fuel the overall inflation by increasing the repo rate and reverse repo rate over the money it lends to the banks.
Some of the government decisions like hiking the salary of its employees, providing unnecessary subsidy can propel the rate of inflation to the greater heights.
Sometimes a company can create its monopoly in the market and hence it can inflate its products and services as and when needed in the absence of a strong competitor.
We humans are greedy and our greediness crosses all its limits when we run after something for earning more and more profits. This situation creates bubble that will add up to the inflation.
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