The term IT CAN CAUSE INFLATION can be solved by the crossword solution AIR, which is a three letter word. AIR is a naturally occurring substance that is composed of nitrogen, oxygen, and other gases. It is an important part of the Earth's atmosphere and is necessary for all living things to survive. In economics, AIR can cause inflation when it is used as a resource in production. This is because the cost of production increases when AIR is used, resulting in higher prices for goods and services.