Mismatch of demand and SUPPLY leads to Inflation, where the PURCHASING power goes down in Inflation. Inflation is a rise in the general price level of goods and SERVICES.

Inflation is not the rise of prices, but the excess money printing and expansion of the money supply (Huge example is Zimbabwe, where the inflation is around in thousands).

For example, EARLIER let say a product can be bought at Rs.10, but now the same product cost you Rs.50. An increase of 400%, If you ask any one why this happened, the answer will be simple the cost of PRODUCTION has gone up so the end value.

The reason is right, but the perspective is wrong, the price has not gone up but the value of the money has gone down.

Mismatch of demand and supply leads to Inflation, where the purchasing power goes down in Inflation. Inflation is a rise in the general price level of goods and services.

Inflation is not the rise of prices, but the excess money printing and expansion of the money supply (Huge example is Zimbabwe, where the inflation is around in thousands).

For example, earlier let say a product can be bought at Rs.10, but now the same product cost you Rs.50. An increase of 400%, If you ask any one why this happened, the answer will be simple the cost of production has gone up so the end value.

The reason is right, but the perspective is wrong, the price has not gone up but the value of the money has gone down.