Inflation in Economy:
What is Inflation? When the level of currency of a country exceeds the level of production, inflation occur. Most of the inflation is caused by the increase of food prices. It might be due to less productivity in agriculture sector and so-called shortage of goods and services in the economy. In addition, fluctuating oil prices in world market could be also, due to rigid wage and price structure, another cause of rise in general price level of almost all other commodities. Ris