Inflation

The three causes of Inflation are, Demand-Pull, Cost-Push and Built-in Inflation. Measured at the Consumer level by the CPI and Industrial level by the PPI. Monthly data released as a YoY change in percent.

Consumer and Industrial Inflation both measure the changes in the price of goods, consumer items and services or production inputs in an economy. Inflation data is expressed as a yoy change in percent and released monthly. In an economy, the root cause of inflation is divided into three sources. Demand, Demand-Pull, Cost-Push and Built-in Inflation. Demand-Pull inflation occurs when the productive capacity in an economy is insufficient to keep up with growth in demand. Therefore, there is an increased competition for the now limited resource. If the cost of inputs into the production chain, for example, energy costs increase, this could cause Cost-push inflation to occur. Finally, if there is the collective expectations by consumers that future inflation will be higher, this is built-in inflation.