Inflation and Its Reasons

directly concerns me.
Inflation is an up-rise in the overall level of prices for goods and services in the economy. At the same time, some goods may become significantly more expensive, others may become cheaper, and still others may not change in price at all.

when mobile phones became affordable, everyone wanted to use mobile communications. Mobile operators did not have time to immediately acclimatize to the high demand.
2. Reduction of the supply.
A shortage can also occur for another reason — if demand remains the same, but goods and services become less. This may happen due to crop failure, restrictions on the import of foreign goods, the actions of a monopolist in some market.

Demand – a need for goods  or services that customers want to buy or use
Affordable – not expensive: ”nice clothes at affordable prices”
Supply – an amount of something that is available for use
Shortage – a situation in which there is less of something than people want or need

rate of foreign currencies increases, then imported goods become more expensive. This also leads to an increase in inflation.
4. High inflation expectations.
When people and companies expect prices to rise strongly, they often begin to change their customer behavior: they buy goods for the future and save less. For example, a furniture manufacturer expects prices for wood and other blanks to rise. In order to cover his future raw material costs, he starts raising the price of his goods in advance.

Weakening – to make or become weak or  weaker
Exchange rate – the rate at which the money of one country can be changed for the money of another country
Expectations – the feeling or belief that something will or should happen
Customer – a person who buys goods or a service