Daily Point 2040 - Built-in Inflation

 

The Banking Tutor

Daily Point 2040

Built-in Inflation 

Expectation of future inflations results in Built-in Inflation. A rise in prices results in higher wages to afford the increased cost of living. Therefore, high wages result in increased cost of production, which in turn has an impact on product pricing. The circle hence continues.

 

Sekhar Pariti

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