Inflation doesn't just start without reason, something must be the cause for the inflation. A lot of factors are responsible for the increase in price of goods and services. In a country where the economy system they practice is capitalism; where production of goods and services are being taken care of by private individuals or private bodies. I think the price of good and services habe the chance to be inflated in such environment because the economy of the country is majorly operated by private individuals which the sole aim of their production is to make gain.
Is the Inflation too overinflated?
As I have mentioned above that Inflation has the chance survive in an environment where capitalism is their sole economic system even if the cost of production is something infinitesimal. But because the determinants of the price of goods and services are left in the hands of the private individuals do they have the control over the price of goods. Them having do much control over the price of goods and services give them chance to overinflate the price of goods and services.
Nothing a private individuals will produce that will serve the interest of the people in the society. Let's take Nigeria as an example, majorly the person who controls the economy of Nigeria is Dangote company that produce and render majority of things we use in Nigeria from the Dangote cement to producing of varieties of foodstuff. He set the prices for goods and services his company produce. When too much power or is giving to private individuals, in such environment,the price of goods and services are bounds to be inflated.
