1. Different types of Inflation?
1.1. Cost-Push Inflation, Demand-Pull Inflation
1.1.1. Cost-Push Inflation: occurs when prices increase due to increases in production costs, such as raw materials and wages. The demand for goods is unchanged while the supply of goods declines due to the higher costs of production. As a result, the added costs of production are passed onto consumers in the form of higher prices for the finished goods.
1.1.2. Demand-Pull Inflation: caused by strong consumer demand for a product or service. When there's a surge in demand for a wide breadth of goods across an economy, their prices tend to increase. While this is not often a concern for short-term imbalances of supply and demand, sustained demand can reverberate in the economy and raise costs for other goods; the result is demand-pull inflation.
2. What Countries Have The Highest Inflation Rate?
2.1. Venezuela and Zimbabwe
2.1.1. Venezuela: Venezuela tops a list of countries with the highest levels of inflation, with a rate estimated at almost 300,000% in April. Around 4 million people have fled Venezuela amid political and economic uncertainty. The economy is less than half the size it was in 2013, as plummeting oil production, hyperinflation and political uncertainty combined to create a vicious cycle that’s proving hard to break.
2.1.2. Zimbabwe: Zimbabwe currently has an inflation rate just under 176%, stoking concern that the nation is returning to the hyperinflation it suffered a decade ago. Prices are increasing amid a scarcity of essentials, including bread, fuel and medicine.
3. What Things Have Been Affected The Most In Covid-19
3.1. Grocery Items, Gasoline, Housing Market, Lumber, Computer Parts, Vehicle Prices
4. What is Inflation?
4.1. a measure of the rate of rising prices of goods and services in an economy. If inflation is occurring, leading to higher prices for basic necessities such as food, it can have a negative impact on society.
5. Who Profits From Inflation?
5.1. Investors, Some companies
5.1.1. Investors: Investors can enjoy a boost if they hold assets in markets affected by inflation. For example, those who are invested in energy companies might see a rise in their stock prices if energy prices are rising.
5.1.2. Companies: Companies reap the rewards of inflation if they can charge more for their products as a result of a surge in demand for their goods. If the economy is performing well and housing demand is high, home-building companies can charge higher prices for selling homes. In other words, inflation can provide businesses with pricing power and increase their profit margins.