Inflation is defined as a rise in prices, which can be translated as the decline of purchasing power over time. — Investopedia — But what is causing inflation, and how does it occur? Well, there are three main types of inflation: demand-pull, cost-push, and built-in. Demand-pull inflation occurs when there is an increase in the money supply and credit, but the production of goods and services does not increase at the same rate. This causes prices to rise due to the basic principles of supply and demand. When there is more money in the system…