Three factors that cause demand-pull Iaflation :
1. Increase in Population: Increase in population refers to increased demand of consumer goods, which puts a pressure on existing supply of goods and services thus, resulting in inflation.
2. High Rate of Investment : The heavy investment made by the Government as well as private industrialists have resulted in continuous increase in the prices of capital goods and other items of production.
3. Increase in Income : With the increased income of the people, rises the demand for their goods and services and hence their price also increases.
4. Enhanced Taxation : With every year budget, the government imposes fresh commodity taxes, where the tax payers can easily shift the tax. It leads to increase in price of different commodities, which in turn push up their prices.
(Any three)