Daily Point 2028 - Demand-pull inflation

 

The Banking Tutor

Daily Point 2028

Demand-pull inflation

 

Demand pull inflation is caused by increased demand in the economy, without adequate increase in supply of output. It is mainly an outcome of excess money income with the people. This high money income would be due to increased money supply. The situation of “too much money chasing too few goods” is an instance of demand pull inflation.

Sekhar Pariti

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