What is inflation
Rise in price of goods and services as happens when spending increase relative to the supply of goods and services in market.
Inflation is sustained increase in the price of goods and services in a economy in a period of time.The value of rupee does not remain constant when there is inflation in a economy.
What are causes of inflation ?
When there is increase in demand of product in an economy : The logic behind this is that too much demand for a product increase its prices.
When of cost of production goes up : when companies producing goods cost of production goes up the price automatically goes up and that causes inflation in economy.