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: -Inflation can be defined as the overall general upward price movement of goods and services in an economy. The U.S. Department of Labor’s Bureau of Labor Statistics has various indexes that measure different aspects of inflation.

Detailed explanation-3: -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-4: -What do economists mean when they refer to inflation as “general increase in the prices of goods and services.” Some prices are rising, some prices are falling, and some prices are constant, but on average, prices are increasing.

Detailed explanation-5: -Based on speed, there are 4 different types of inflation – hyperinflation, galloping, walking, and creeping.