Inflation and unemployment are the two most talked-about words in the contemporary society. These two are the big problems that plague all the economies. Almost everyone is sure that he knows what inflation exactly is, but it remains a source of great deal of confusion because it is difficult to define it unambiguously. 1. Meaning of Inflation: Inflation is often defined in terms of its supposed causes. Inflation exists when money supply exceeds available goods and services. Or inflation ... Inflation is categorised by the rate at which prices increase. Based on rate, inflation can be classified as creeping inflation, walking inflation (Trotting Inflation), galloping inflation (Hopping or Running Inflation), or hyperinflation. Understanding the types of inflation, their meaning, causes and consequences is essential in protecting against the adverse effects of inflation on the economy. Inflation, representing a general rise in the price level of goods and services over time, manifests in various forms depending on its underlying causes, intensity, and characteristics. Understanding these different types provides crucial insights for policymakers, economists, and individuals alike in navigating economic environments effectively.
