Monopolies and cartels love inflation as they can increase the prices. One interesting thing is that when prices increase, the raw prices decrease. So if you a

Monopolies and cartels love inflation as they can increase the prices. One interesting thing is that when prices increase, the raw prices decrease. So if you are a middle man you will make huge profits. Demand drops as prices increase. But producers don't want to lower their production. We have a lot of automation in the production chain, so while building a new factory cost a lot, dropping production output from 100% to 90% will save very little money. Over-production causes prices to fall.