Courtesy of National Pork Board DEMAND DRIVES INVENTORY: Demand will dictate how much and how rapidly producers adjust inventories. However, contracts — both production and marketing — and high fixed costs of operating facilities are just two of multiple factors that will help drive short- to medium-term inventories. Demand-pull inflation tends to benefit farmers, while cost-push inflation tends to hurt them. Two types of inflation can drive the overall price level higher. Cost-push inflation occurs when production costs rise or supplies fall. Either will boost prices as long as demand remains the same. "Too many dollars chasing too few goods" drives demand-pull inflation.