
What Causes Inflation?
Stuff You Should Know
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The Cost Push Theory and the Demand Pull Theory
Cost push theory is the increase of the cost of like labor or the cost of raw materials basically Anything that's gonna end up getting like a loaf of bread on a shelf Including like the fuel for the trucking and packaging and yeah all that stuff that that is what is going to push up In prices. The demand pull theory says people are building new homes now because they don't want extra inventory after last year's pandemic.
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