The assassination of Archduke Franz Ferdinand of Austria. Alliances between major powers created a domino effect. Militarism and the arms race increased tensions. Nationalism and ethnic tensions within Europe. Imperial competition and colonial disputes.
Inflation reduces the purchasing power of money. It can lead to higher prices for goods and services. Savings may lose value over time. Wages may need to increase to keep up with rising costs. It can cause uncertainty and reduce investment.