Today inflation has become the common problem of the world and almost every one talks about the root causes of inflation. It is clear that inflation is a matter of raising prices when the supply of goods and services is low than the demand for such items starts increasing. The increase in pricing is probably due to the increase in the supply of money than the production of goods and services. Thus it leads to inflation in the country. Increase in the supply of money is not only the single cause of inflation, there are a lot more causes of inflation, which directly or indirectly impact the prices.