Demand pull inflation when the demand for goods

Demand-Pull Inflation is a phenomenon where the demand for some service or good is greater than the supply. As the supply is not available at a certain moment, the seller raises the price of his goods, causing demand-pull inflation. This means that, when consumer demand increases, the seller must have prepared some additional supplies of the product. However, additional supplies are often unavailable, so other sellers raise their prices in order to earn more money on the demanded product.

This phenomenon is caused by rapid economic growth, increased money supplies and it is often related to the products of the strong brand.