-Inflationary spiral refers to a situation where there is a continuous increase in prices which is sustained by the tendency of wage increases and cost increases to react on each other.
-The spiral usually begins with an increase in demand. The direct effect of this increase is that the producers (of commodities) raise prices to continue to make a profit. It usually begins with a rise in production costs.
The spiral usually begins with an increase in demand. The direct effect of this increase is that the producers (of commodities) raise prices to continue to make a profit. It usually begins with a rise in production costs.
