Basics of Economic Inflation

When there's more paper money or coin money minted into a currency system, prices go up.  This is the most fundamental rule in economics.

Prices are set by the law of supply and demand, especially in a capitalistic model under a democratic system.

The...
HIGHER the supply of goods vs supply of dollar, the LOWER the price you pay for goods.

The...
LOWER the supply of goods vs supply of dollar, the HIGHER the price you pay.

In other words, The...
HIGHER the supply of dollar vs supply of goods, the HIGER the price you pay for goods.

and The...
LOWER the supply of dollar vs supply of goods, the LOWER the price you pay for good.

By color, you want Dollar in Red, and Goods in Green in order for you to be able to have a cheaper living standard.

You get two curves, and where the curves meet, that's the price.

Inflation normally kicks in where supply of money is more than supply of goods. It basically means there are too much money printed or minted to be divided among the supply of goods available.

However, there  can also be other various factors to cause increase of inflation. Population growth is normally one, but government manipulation is the worst and most detrimental.

It is normal for government to increase interest rate to make profit on debts it sold to investors of  of its Treasury bonds, but sometimes, out of desperation, the government chooses to make drastic decisions in favor of its corporate business partners. This is where government manipulations can distort and defy natural economic laws and indications.