Question

what is your opinion? what do you think? Comment on it

I have experienced price inflation buying gasoline. I paid on average of 10 % per gallon in Jan 2020 than January 2019. In my opinion, I am expecting inflation rates on average over the next 20 years to be around 2%

I believe 5% rate of return will be enough to defeat cost of average inflation and tax. Borrower benefits as it needs to pay back money that is worth less, lenders are being hurt by getting money that is worth less.

I think increasing in demand for product or service is causing inflation as well as producers/manufacturers will drive inflation by limiting supply available for product and service.

Answer 1

First of all we need to understand that the inflation reduces the purchasing power of present money. This mechanism can also be termed as the reduction in the worth of money.
Secondly, it is true to say that the increasing demand for a product or service causes inflation. Also at the same time, the decrease in supply also causes inflation. This can be well understoof with the help of this chain of effects.

Decrease in supply of product/ increase in demand of the product ----> excess demand --> inflation

Hence in order to meet the excess demand, inflation prevails in tha market. Hence if the supply could be increased that the problem of inflation could be met out.