There are several key factors that go into why we have price increase. When we think about why a company would raise price, there are so many things that occur on the backend side that could be causing the increase. You would think that companies manufacturing these goods and services would rise price because maybe cost went up for them. And they have to maintain a standard to cover operational expense.

For example, a Can of Corn beef use to cost $1.00 a can, today the cost for a Can of Corn Beef is $5.00 a can. Can you imagine the price for Corn Beef more than tripled?

The consumer price index shows cost increase for service and demand. In the last 12 months, ending in an increase of 3.25 from a year ago. Setting the core CPI that has risen to 0.4% and up 3.8% which was over the forecasting amount. These facts are according to the Bureau of Labor Statistics reported. Showing there is a consumer price index change.

When we think about the reasons why price inflation occurs. The first question we need to ask ourselves is, How do we understand the concept of why price inflation occurs? And why does this change always take effect on the economy over a period of time.

There are several factors that play a role in all of these which relates to the demand-pull inflation what this means is when there is a demand in the economy, and it exceeds the aggregate supply. When these demand outpace their availability, sellers may raise the prices to capitalize on the situation for many reasons. The reason why this happen is the economic expansion where consumer confidence is higher and leading to the increase in spending.

Cost-push plays a major role in the reasons why this happens as the cost of the production has increase causing the labor price to go up to produce more of the supply. There are Monetary Factors that change the supply. For example bank increase for money supply in the effects of lowering interest rates or engaging in quantitative easing. That in the circulation of the economy lead to the increase and the supply for outplace for growth is needed

We should always expect that an ever-changing society with changing events has to balance the way our ecosystem flow. That Expectation to the change will cause inflation. In fact, try to understand the cycle of money and how it works. We know there has to be a full cycle which affect not only cost in the area of questioning, but in the system as a whole. That price increase should eventually balance it’s self-out to accommodate area in taxes, wages which is something we all need is more money. That this inflated prices should eventually show up in all our wallet.

Money balance is required, and should be a key factor in Sustainable cause to the cycle of our financial ecosystem.