What are the inflation’s causes and consequences 

Inflation is the continuous increase in the overall level of prices of goods and services in a country. In
other words, it is the price of things that rise over time and this led to the decrease of the money’s
value.

Reasons for inflation include , Demand-induced.This inflation results from an overall increase in
demand for goods and services leading to an increase in their prices and usually occurs in fast-
growing economies, such as the elio oil product in Algeria when the demand . In addition, cost
inflation occurs when production costs rise to companies and when they do those companies
increase prices to maintain profit margins , and costs can include things like wages, taxes, or higher
costs for natural resources or imports.

The high equations of inflation negatively affect the levels of consumption, investment and exports
and the purchasing power of local labor and thus economic activity to stabilize the general level of
prices and reduce the phenomenon of inflation and its negative effects on various economic sectors
to achieve local price stability.

To conclude, Inflation is one of the main indicators of the extent to which the state controls
macroeconomic conditions.

What are the causes and consequences of inflation ?

Inflation is a sustained increase in the overall price level of goods and services in a country. In other
words, the price of something increases over time, which causes the currency to depreciate.

Some causes of inflation are demand-induced. This type of inflation is caused by a general increase in
demand for goods and services, causing their prices to rise, and typically occurs in fast-growing
economies such as the elio oil product in Algeria. In addition, cost inflation occurs when a company’s
production costs increase and those companies raise prices to maintain profit margins, and costs may
include wages, taxes, or increases in natural resources or import costs.

A high inflation equation has a negative impact on consumption, investment and export levels, as
well as the purchasing power and economic activity of the local labor force, in order to stabilize the
overall price level and reduce the phenomenon of inflation and its negative impact on the economy.
Price stability in various local economic sectors.

In conclusion, inflation is one of the main indicators of government control of macroeconomic

conditions.