A factor explaining the increase in the price of the expectations about the needs of the economy on both the labour and goods markets. If anyone believes that prices will also rise by at least 10%, workers and business will bring this mentality on the negotiation of labor contracts, purchase and sale of fuel input and the selling price of the goods.This shows the key issue is not inflation, but the inflation expectations of the people and the business. This expectation will affect the next changes in the total demand.
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