Demand pull inflation arises where there is an increase in the requirement for a particular good or service without a corresponding increase in its supply. Alternatively, it may be that the demand remains constant, whilst the supply dwindles. This is commonly described as "too much money chasing too few goods". In most markets, this should not be a long-term issue, as there will be changes that will circumvent the problem, such as entry of new suppliers into the market, or the substitution of suitable alternative goods and services.
- See also : Economics