① Demand-driven inflation. The excessive growth of total demand exceeds the total supply of goods at the current price level, resulting in a general increase in prices. The excessive growth of total demand is characterized by the continuous increase of money supply caused by investment expansion and consumption expansion, which exceeds the available amount of social goods, so it is also called excessive demand expansion.

② Cost-driven inflation. Due to rising costs, prices generally rose. One of the factors leading to the increase in cost is the increase in material consumption, and the other is that the increase in wages exceeds the increase in labor productivity.

③ Structural inflation. Due to the structural imbalance of social and economic sectors, prices generally rose. This type of inflation is usually more prominent in developing countries. Mainly in three situations:

First, excessive demand and insufficient supply in some domestic departments, and even some large-scale key products, led to soaring prices, which only rose but did not fall, and then spread to the prices of other departments, thus making the overall price level continue to rise;

Second, the uneven development of labor productivity in various departments in China has led to the increase of monetary wages in the departments where labor productivity has increased rapidly, and the monetary wages in other departments will also increase accordingly, causing prices to rise, thus making the general price level generally rise;

Third, when the price of products in open economic sectors tends to rise due to the influence of the international market price level, it will spread to non-open economic sectors, which will lead to the rise of the general price level.

④ Imported inflation. A general increase in domestic prices caused by the increase in the prices of imported goods. This type generally appears in the case of global inflation and spreads internationally through international trade, multinational corporations and open economic sectors.

⑤ Curb inflation. In the market, when the total supply is less than the total demand, or there is a structural imbalance between supply and demand, the state suppresses the stability of the overall price level by controlling prices and commodity rationing, which is an inflation phenomenon that actually exists but does not occur.

Increasing the supply of RMB is one of the pressures of inflation, but it is not the whole cause of inflation.