The Ugly Truth About InflationWe might have come across this phrase “Rising prices is the cause of inflation“.
Is this really true? In the world of finance, cause and effect is often misunderstood.
I’m no economist - but I will try to explain in layman terms what inflation is.
First of all, the phrase I quoted at the start of this post is of course completely false.
Rising prices is the result of inflation, and not the cause of inflation. So what exactly causes rising inflation?
http://www.lioninvestor.com/the-ugly-tr ... inflation/