The sudden rise in the inflation rate is sometimes attributed as ldquo Demand pull inflation r...........

Economic Affairs Inflation

The sudden rise in the inflation rate is sometimes attributed as “Demand pull inflation” which means

one where price level increases due to the increase in the price of inputs like increase in wages and raw materials.

one where there is an increase in price level due to the increase in the aggregate demand

A rise in the rate of VAT would also be a cause of increased domestic inflation in the short term because it increases a firm's production costs.

none of these

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Explanation:

Demand-pull Inflation is asserted to arise when aggregate demand in an economy outpaces aggregate supply. It involves inflation rising as real gross domestic product rises and unemployment falls, as the economy moves along the Phillips curve. This is commonly described as "too much money chasing too few goods".