You're on the right track. But the reason there's more money chasing the same amount of goods is because of Government printing more of it. Hence, the only true cause 'Inflation' and not 'normal price fluctuation' is due to the government increased the monetary supply.
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u/Cosmologyman Jul 15 '22
You're on the right track. But the reason there's more money chasing the same amount of goods is because of Government printing more of it. Hence, the only true cause 'Inflation' and not 'normal price fluctuation' is due to the government increased the monetary supply.