ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Running Inflation: When prices rise rapidly at the rate of 10 to 20 per cent per annum, it is called running inflation. This type of inflation has tremendous adverse effects on the poor and middle class. Its control requires strong monetary and fiscal measures.

Detailed explanation-2: -When prices rise by more than 10% per annum, running inflation occurs. Though economists have not suggested a fixed range for measuring running inflation, we may consider the price rise between 10% to 20% per annum as running inflation.

Detailed explanation-3: -When prices of goods and services rise at a double, triple digit rate per annum that situation is known as ‘galloping inflation’.

Detailed explanation-4: -Hyperinflation – an explanation It refers to a situation where the prices of goods and services rise uncontrollably over a defined period of time. In general, the term is used when the rate of inflation increases at more than 50% a month.

Detailed explanation-5: -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.