Question

In poor countries, what are the main causes of inflation and why?

Answer 1

The main cause of inflation in the poor countries is that they are facing budget deficits and in that case government make such policy to recover it's economy that policies make prices higher and cause inflation in the country.

They face budget deficits and for offsetting it some countries print thier currency notes which will cause inflation in the country.

Earlier Zimbabwe has printed his currency and there is so much inflation that they have to adopt US currency at last

In poor countries workers expected inflation and expect their wage rate to be higher that is offset by high prices and make inflation.