1. Day to Day Economics
Anatomy of Inflation

2. What is inflation…
Inflation is a sustained and overall rise in the
general price level.
• Demand-pull inflation.
• Cost-push / Supply shock inflation.

3. Case Study
The formation of the OPEC in 1960 and the
subsequent price rise in oil lead to a major
increase in the cost of production of many
energy-related commodities leading to a
supply shock all over the world and
consequently a cost-push inflation.

4. Thank you
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