ESSENCE AND NATURE OF INFLATION ORIGIN

The paper defines the inflation origin nature. The author studied the essence of the “inflation” concept in the process of economic views evolution and identified that the increase in money supply, the main monetary factor of inflation, has lost its values and the non-monetary reasons for the price growth have appeared. The author summarizes the “inflation” concept as a complex economic phenomenon which occurs in connection with the unbalanced development of social reproduction, the development mechanism of which is the aggregate supply and demand that creates two main types of inflation – the demand inflation and the supply inflation.