ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Inflation is an economic situation where the general price level in the economy for all the relevant goods has a constant appreciable rise over a considerable period of time. in other words, it refers to a persistent upward movement in the general price level of all relevant goods and services in the economy.

Detailed explanation-2: -Inflation: A general, sustained upward movement of prices for goods and services in an economy.

Detailed explanation-3: -Inflation measures how much more expensive a set of goods and services has become over a certain period, usually a year. It may be one of the most familiar words in economics. Inflation has plunged countries into long periods of instability.

Detailed explanation-4: -Erodes Purchasing Power An overall rise in prices over time reduces the purchasing power of consumers, since a fixed amount of money will afford progressively less consumption. Consumers lose purchasing power whether inflation is running at 2% or at 4%; they just lose it twice as fast at the higher rate.

Detailed explanation-5: -Demand Pull Inflation. Cost-Push Inflation. Open Inflation. Repressed Inflation. Hyper-Inflation. Creeping and Moderate Inflation. True Inflation. Semi-Inflation.