Why is inflation bad for the American economy? Imagine going to the popular local food market or gas station several times a week. After a few weeks, imagine walking into these stores and noticing that prices have been steadily increasing over the past few months. This is called inflation and it causes many problems in the United States. There are three different types of inflation: demand-pull inflation, cost-pull inflation, and built-in inflation. Demand-pull inflation occurs when prices rise due to such high demand. Cost-push inflation occurs when prices rise due to high input costs. Intrinsic inflation occurs when prices continue to rise despite natural causes. The inflation that occurs in the United States is a demand surge. Inflation has affected the United States in terms of rising prices of food and oil commodities, and putting millions of people out of work. Commodity prices are the prices of all marketable items produced to satisfy needs or wants. This year, inflation has had a greater impact on commodity prices than ever before. Prices of most key items continue to rise drastically. “The previous record for 55 food items was 213.5 points in June 2008. These points have climbed to 214.7 since the beginning of this year. Sugar products hit a 30-year high, coffee products hit a 13-year high, corn products hit a 29-year high, and oil hit a 33-year high. month” (“Food prices reach record high” 1). These milestones only show part of the magnitude of these new awards. The reason why these prices have gone up is that the demand for food products is increasing every day. America is growing bigger every day. As demand continues to increase, so do prices. The National Inflation Association predicts that food inflation will be the biggest problem of the 1920s...... middle of paper ...... September 2011. Dillow, Chris. “Goodbye inflation.” Investor Chronicle. np October 18, 2011. the web. November 20, 2011. Ferrara, Peter. “The Coming Crash of 2013.” The Obama watch. np June 8, 2011. Web. November 20, 2011. “Food prices reach record high. » National Inflation Association. np December 2011. Web. November 20, 2011. Hayes, Ron. “12 reasons why high gas prices are GOOD for America.” The Journal of Wisdom. npWeb. November 20, 2011. Moneylife, digital team. “Weak rupee could erase gains from falling crude oil prices, says report.” Moneylife. np October 17, 2011. the web. November 20, 2011. Pilla, David. “Growth of legal and general relationships; Profit hampered by economic conditions. »AM Best Newswire. np August 03, 2011. Web. November 20, 2011. Rutherford, Burt. “Will US food prices follow global trend? Beef. np September 16, 2011.Web. November 20 2011.