88.5k views
3 votes
Why would producers tend to experience inflation before consumers? what type of?

User Home
by
7.9k points

1 Answer

4 votes

Producers tend to experience first the inflation before consumers because the prices of raw materials, electricity and fuel which are needed in the production of goods increase. In this case, the supply of the materials needed is reduced and the output of products will diminish as well.

User Frapontillo
by
7.6k points