THE IMPACT OF INFLATION ON BUSINESSES

Abstract

Inflation, as a general rule, is defined as a process of widespread and permanent price increases. Based on this, we can infer that not every increase in the price of a good is inflationary, since, logically, prices rise whenever production costs increase. As an example, let's consider the meat phenomenon: the rancher sells it, say, for 28 pesos per kilogram, and the consumer (the eternal victim) pays 150 pesos per kilo. And that's not all that happens: a meager steak of poor quality is sold in restaurants of a certain "category" for 200 pesos (on average).