The price for goods and services increases due to excessive demand meeting inadequate supply.

Many can argue this is 'good' inflation, reflecting a strong economy with high demand. This kind of inflation is merely the interaction of supply and demand - where there is higher demand, prices rise. When this type of inflation is reflected across the entire economy, inflation will be recorded.

Example - During the holidays new video games come on sale, many become the "hottest" product to buy for some consumers. The demand for the product makes and the limited supply of the game, vendors may raise prices.