What causes retail inflation?

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Rajeev Dwivedi, Ph.D.

Higher weight of food items causing high retail inflation in India. it has demand and supply along with value as well as internal and external factors.

Paul Stock

Inflation is usually caused by one of two factors ~ demand or input cost. Excess demand can put pressure on prices to increase. The other possibility is the cost of inputs (labor, utilities, rent, etc.) puts upward pressure on prices.