Why does economic transition typically result in high inflation?

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Rapid increase in money supply combined with rising wagesLarge government deficits alongside currency devaluationSignificant monetary expansion paired with currency devaluationPrices jump from suppressed levels to their natural equilibrium, and the government relies on inflation tax as a revenue source

Explanation

During economic transition, prices often rise sharply from artificially low levels to reach their true market equilibrium. Additionally, the government depends on the inflation tax as an important means of generating revenue, which contributes to sustained high inflation.