Financial Education - Market supply as a consequence of cost increases

In financial economics, cost inflation is defined as "that which originates on the supply side of the markets as a consequence of an increase in costs" as a result of various negative economic factors that alter the supply of products and services.

Such as tax increases, devaluation of the purchasing value of the currency, increase of imported goods and services, wage increases; thus, as there is an increase in the elements that make up the costs, they are responsible for the high price levels.

While the monetarist explanation of inflation, in theory it is pointed out as "the increase in the quantity of money above the growth of production", the monetarist explanation of inflation, in theory it is pointed out as "the increase in the quantity of money above the growth of production".

Regarding inventory, the authors state that inventories "represent a set of goods that are owned by a company and whose acquisition or manufacturing objective is to resell them in order to obtain a reasonable profit margin".

For some authors the inventory, as the items acquired by the company through purchase to dedicate them to the sale or production and finally be sold.