To answer this question, WCCO’S Heather Brown spoke with Augsburg’s Business Department Chair Jeanne Boeh. “Prices are going up partly because people have more income,” Boeh said.
There are two main ways for inflation to occur, Boeh explained to WCCO. The first is called “demand pull,” and that is when people have more money, they demand more and, in turn, businesses charge more. The second way is “cost push” inflation, when the inputs — like gas or wages — that go into a making a good or service rise.
See the full interview on the WCCO website.