Which of the following is a cause of inflation?

Demand-pull inflation occurs when the demand for goods and services exceeds their supply, leading to an increase in prices. This situation often arises in a growing economy where consumers have more disposable income and are willing to spend more, pushing up the demand. When demand increases, suppliers may struggle to keep up, which can lead to rising prices.

In contrast, decreased production costs typically lead to lower prices or increased supply, while a reduction in consumer demand would generally cause prices to fall. Increased savings rates suggest that individuals are saving more rather than spending, which can also reduce demand and avoid inflationary pressures. Therefore, among the options provided, demand-pull inflation best represents a direct cause of inflation.