Reference: self

Question:
Why does a rise in price cause a rise in inflation?

ANS
Context header: Inflation
Context explanation: Inflation refers to the rise in the price of goods along with a limited
supply of goods. The rise in Inflation means a rise in the living standard of the consumer
because of the demand for more goods increase due to an increase in their income. As the
consumer's demand increase, the prices of goods will also increase.
Answer and explanation:
The rise in inflation is due to a rise in price. In today's world, consumer behavior depends on
many factors like future expectations, market conditions, present income, and other factors.
In another word, consumers make consumption decisions based on these factors. If the
prevailing market condition, where prices of goods rise, this will indicate that inflation is also
rising. Then the consumers react and demand more goods in the present time in the hope that
the price of goods may rise exponentially in the near future. Despite the limited budget, the
consumers' demand will increase as a response to the market condition. As a result, the
demand increases at an exponential rate leading to the rising in inflation.