What Really Causes Inflation?

Ken Fisher, founder and Co-Chief Investment Officer of Fisher Investments, shares his perspective on what drives inflation. While many attribute rising prices to factors like tariffs or government spending, Ken believes these explanations miss the mark. According to Ken, inflation fundamentally results from money supply growth outpacing the economy’s ability to produce goods and services. Ken expresses the real risk of resurgent inflation lies with how quickly central banks expand the money supply, especially as they weigh changes to interest rates. This doesn’t just apply to the US. Given how easily money moves across borders in the global economy, Ken says it’s important to assess how central banks around the globe are expanding money supply. Today, Ken doesn’t believe inflation will fall as low as some central banks may want, but he also expects a large uptick in inflation barring a markedly faster increase in money supply. For more of Ken Fisher's thoughts on the markets, visit us at https://www.fisherinvestments.com. To make sure you never miss an update, subscribe to our channel: https://www.youtube.com/@fisherinvestments?sub_confirmation=1. Have any feedback on this video? We would greatly appreciate if you could complete this 1-minute survey: https://fi.co1.qualtrics.com/jfe/form/SV_6Vw1ezlogR044S2?VideoCode=KFWeekly16Oct2025 To learn more about Fisher Investments’ reviews of markets and financial topics, download the Fisher Market Insights Mobile App, available for iOS on the App Store (https://apps.apple.com/us/app/fisher-investments/id1169932255) and for Android on Google Play (https://play.google.com/store/apps/details?id=com.fisher.investments&hl=en_US). Connect with Fisher Investments on: • Facebook - https://www.facebook.com/FisherInvestments • X - https://twitter.com/fisherinvest • LinkedIn - https://www.linkedin.com/company/fisher-investments • Instagram - https://www.instagram.com/fisher.investments • TikTok - https://www.tiktok.com/@fisher_investments You can also follow Ken Fisher here: • Facebook - https://www.facebook.com/KenFisher.FisherInvestments • X - https://twitter.com/KennethLFisher • LinkedIn - https://www.linkedin.com/in/ken-fisher/ • Instagram - https://www.instagram.com/kenfisher_fisherinvestments/ Investing in securities involves a risk of loss. Past performance is never a guarantee of future returns. Investing in foreign stock markets involves additional risks, such as the risk of currency fluctuations. The foregoing constitutes the general views of Fisher Investments and should not be regarded as personalized investment advice. Nothing herein is intended to be a recommendation. The opinions expressed are subject to change without notice.