How does inflation occur?

Question

When I say inflation, I don't mean in reference to blowing up a beach ball, a balloon, a tire, or anything else that you put air into to make it bigger.

Answer 1

http://www.investopedia.com/university/inflation/inflation1.asp

There is a good discussion of inflation at Investopedia.com.

In general it happens when demand for products and services by consumers is stronger than the supply of the desired products and services. For example, in the current world economy, developing countries like China and India are demanding more materials to support their growth--oil, building materials, copper, etc. That extra demand causes the prices of those items to rise because there is limited supply. And many of those items are required to operate manufacturing plants and other consumer services so prices of other items goes up as well--e.g., cereal, UPS shipping, gas.

Good luck in trying to figure it out.

Answer 2

wait another inflation is about too happen

Answer 3

when you blow up a beach ball. that's INFLATION!