Govt doesnt (or shouldnt) at any rate cause inflation. They react and manage it. Its a normal economic thing. They should of reacted to the min wage vs inflation along time ago.
Eg; The Govt there has been keeping fuel prices at such low levels because they havent reacted to it properly and for years. They actually use your tax dollars to subsidize the cost. But the super rich dont pay tax (why should they? They tell you all who to vote for without a reason why..and then you do it?? ..)..so its the good old middle class funding the fuel subsidization which they then get to save at the gas station....
Government intervening is a factor. Government intervention is normal, because it occurs on a regular basis, but not because it adds value.
Government skews natural economic activity via licensure and other regulations which has an impact on the number of potential suppliers of a given good or service. While the extent of governments interruption to what might have been is difficult to measure, it exists. We can assume though that with fewer allowed providers of a given service or good the market prices will be higher, with some exceptions, notably when a monopoly created by excellent customer service rather than exclusion of potential competition exists.
For instance, the price of cannabis is not at its natural price due to government, the price is inflated.
I won't bother bringing up monetary policy or the federal reserve. Peace.
Things are bloody expensive these days! any little bit helps.
