ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Creeping Inflation: When the rise in prices is very slow (i.e., less than 3% per annum), it is called creeping inflation or mild inflation. It is regarded as safe and essential for economic growth.

Detailed explanation-2: -Creeping, or mild, inflation occurs when prices rise slowly. According to the Federal Reserve, when prices increase by 2% or less, it benefits economic growth. This kind of mild inflation makes consumers expect that prices will keep going up, which boosts demand.

Detailed explanation-3: -Creeping Inflation: This is also known as mild inflation or moderate inflation. This type of inflation occurs when the price level persistently rises over a period of time at a mild rate.

Detailed explanation-4: -When inflation is more than 10%, then it is known as galloping inflation. When the rise in prices is 3% to 10% in a year, then it is known as walking inflation. When the rise in prices is 3% or less, then it is known as creeping inflation.

Detailed explanation-5: -Creeping inflation is a condition where the inflation in a country increases slowly but continuously over a period of time and the effect of inflation is noticed after a long period of time. For example, if the inflation is at the rate of 3% it will take 33 years for the prices to double.