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Inflation is the result of demand growing faster than supply.
Well...we can have cost-push or demand-pull inflation, and at the same time if things are managed just right, like wildly stimulative fiscal policy that pours money into the economy, and protectionist tariffs that push prices up. We have just seen a reversal of some tariffs, to reduce food cost-push inflation. We have also seen price inflation by producers, who simply stop producing lower priced models, in favor of higher priced models, to juice profits.
Steve
