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These goods are included in a "market basket" which changes infrequently, so this measure can reflect fluctuations in the price level as well as the purchasing power of the Rand.
There are two basic types of inflation, namely: cost-push and demand-pull inflation. Cost-push inflation is caused by an increase in the cost of production. Increases in the cost of labor, raw materials, equipment, and borrowing money push the cost of production up resulting in higher overall prices. Demand-pull inflation is caused by an increase in demand or in the supply of money. This increased demand allows producers to charge higher prices...
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