Cause of inflation in Australia?

Question

This may sound like a stupid question, but humour me, i dont really know much about it

So,people keep spending which is causing inflation to increase - are people only spending more because they dont have a choice as all the necesities (groceries and fuel for example) have gone up in price?

Answer 1

At the moment, it is particularly due to petrol and food prices going up.  People do have to purchase these so that contributes.

There are also not enough skilled workers so they are being paid more.

The Australian economy was strong for so long, that this was bound to happen.  Hopefully it won't go on too long.

Answer 2

people are still buying non-nessescities like cars and ipods, tvs etc. They have only just started to deacrease last month.

Answer 3

My guess to the cause of inflation in the American economy (America has the largest economy, so changes in America will affect other countries, like Australia), is increasing costs of supplies to make finished products. For example, the price of grain and oil is going up in America, so it would consequently cause a price increase in, say, bread and air flights respectively, since the costs of those industries' inputs are increasing.