ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Price inflation is an increase in the price of a collection of goods and services over a certain time period. Strong demand and supply shortages tend to cause price inflation. Price inflation can also be caused by the cost of inputs to the production process increasing.

Detailed explanation-2: -During the observation period from 1960 to 2021, the average inflation rate was 3.8% per year. Overall, the price increase was 829.57%. An item that cost 100 dollars in 1960 costs 929.57 dollars at the beginning of 2022. For January 2023, the year-over-year inflation rate was 6.4%.

Detailed explanation-3: -Inflation is the rate of increase in prices over a given period of time. Inflation is typically a broad measure, such as the overall increase in prices or the increase in the cost of living in a country.

Detailed explanation-4: -Based on speed, there are 4 different types of inflation – hyperinflation, galloping, walking, and creeping.

Detailed explanation-5: -Inflation is a sustained rise in overall price levels. Moderate inflation is associated with economic growth, while high inflation can signal an overheated economy. If economic growth accelerates very rapidly, demand grows even faster and producers raise prices continually.