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What are main causes of inflation in a country?

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Main causes of inflation in a country include;

  • Increased money supply due to provision of more credit facilities
  • Increased government expenditure in excess of tax revenues
  • Increased in wages without corresponding increase in output of goods / services due to trade union pressure
  • Increased cost of inputs such as oil and intermediate goods
  • Increased taxation such as VAT
  • Shortages of goods and services
  • High cost of imports of both capital and finished goods. 

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