Examine the causes of (persistent) inflation in your country.

• Rising prices in international market
• High cost of transport due to high cost of fuel
• Shortage of foreign exchange causes reduction in imports and scarcity of goods leads demand pull inflation
• Frequent devaluation. This leads to high costs of imports and import inflation.
• Excessive government expenditure and much money that is not by supply of goods has given rise to price increase lead to demand pull inflation
• Increasing population growth rate which increases the demand for goods and services and increase in prices
• Increase in wages; persistent lead to increase in money supply in the circulation workers’ purchasing power, demand and inflation
• Political instability leads to low investment and output causing demand pull inflation
• Influence of trade unions. Trade unions ask for higher wages that cause high cost of production leading cost push inflation
• Monopoly tendency. Monopolist lower their output in order to charge high prices leading to profit push inflation
• Underdeveloped infrastructure. Poor road network for example limits movement of goods and service causing scarcity in areas where goods are highly demanded leading to high prices
• Reduced taxes. Low taxes on income increase the level of disposable income which leads to increase in demand of goods and services resulting in high prices.
• International crisis such as that between Russia and Ukraine in 2022 leads scarcity of imported goods and services causing a rise in prices
• Speculation(by traders and consumers)
  
• Rise in taxes, leads to cost push inflation.
• excessive inflow of income from abroad/excessive inflow of capital with high finance camponents

List

• Excessive (increase) in government expenditure.
• Excessive inflow of income from abroad/excessive inflow of capital with high finance component ·
• Rising: costs of production (e.g. rising wages, fuel prices)
• Natural hazards (leading to fall in supply from agriculture sector.
• Excessive issuance of currency
• Excessive/uncontrolled credit creation
• Break-down of infrastructure
• Greed for profits by traders
• Speculation (by traders and consumers).
• Unfavorable political climate
• Excessive exportation of essential goods/excessive demand for essential goods in the export markets.
• Falling value of the local currency relative to other currencies.
• Importation  from countries experiencing inflation
• Excessive borrowing from the central bank