What is causing the inflation all over the world?

Question

food prices and stuff..why is it rising?

Answer 1

debt!!!!!

Answer 2

There are a number of factors that come into play here. Firslty, let us identify exactly what inflation is. Inflation is rising prices and can be either driven by cost push which is raising prices to cover costs by companies. Also, increasing wages forcing companies to increase revenue by increasing prices to cover costs of production. The other factor is demand. The demand for any product will invariably push up the price of everything. Other factors are rising prices due to a world food shortage and off course the increase in world oil prices is the icing on the cake. A high price of oil will force up many consumer products and agricultural products as manufacturers struggle to cover costs of production. Transport companies, airlines etc will all be forced to raise prices in order to maintain strong revenue growth. This is it in a nutshell, have a great day.

Answer 3

People can't get what they want. So some people kill others and make excesses to why they kill them for there resources OIL,food, raw material, religion,and the list could go on! It's about who could use who and not get left behind in the race for being The #1 selfish and stupid nation that will crumble and take other nations down with them!

Answer 4

Well, America, which s basically the lead nation, is wasting all their money on a war with people who hate us and jack up gas prices.

Answer 5

You can't blame gasoline for all inflation in the world. There are an actual number of causes for inflation

1. Cost-push inflation: this is inflation occurred when the cost of production for firms rises, hence producers automatically rise the price of products to cover the extra costs.

Cost-push inflation occurs typically by increase in price of gasoline, as it is a major resource for any kind of production, as well as transportation costs.

Also, cost-push inflation may occur as a result of wage spiral. This is when a union successful achieves a rise in labor wages, which pushes up cost of production. Prices then rises,  and people are worse off, which encourages them to negotiate for another rise in wages. This cycle keeps going on and on, and it is called wage spiral.

There are numerous other causes of cost-push inflation. Note that inflation spreads itself within an economy and international, which means once one price of a good rises, many other prices will follow the rise as the goods are in conjunction for consumption or productions.

2. Demand-pull inflation: this type of inflation occurred when demand for a product increases, which pull up the price as there are not enough products to satisfy all demand.

Demand-pull inflation happens naturally in economic boom. Also when there is too much money in the cash flow, as consumers have too much money and willing to buy more (the volume of money is controlled by government by adjustment of interest rate). Moreover, there is inflationary expectation, which is when people expect prices to rise, hence they'd rush to buy now before it happen, which pushes the price to rise faster.

There are a lot more reasons for inflation. I'm just listing the most basic ones. Hope that helps! :)

Answer 6

It's this thing called gasoline.