ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -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-2: -Creeping inflation is a type of inflation in which the price level persistently rises over a period of time at a mild rate. During creeping inflation, the annual price rise varies between 2% to 3%. Creeping inflation is good for the economy as it creates demand.

Detailed explanation-3: -Cost-push inflation occurs when overall prices increase (inflation) due to increases in the cost of wages and raw materials. Cost-push inflation can occur when higher costs of production decrease the aggregate supply (the amount of total production) in the economy.

Detailed explanation-4: -Inflation persistence is sometimes defined as the tendency for price shocks to push the. inflation rate away from its steady state-including an inflation target-for a prolonged. period. Persistence is important because it affects the output costs of lowering inflation.