ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Inflation is an increase in the level of prices of the goods and services that households buy. It is measured as the rate of change of those prices. Typically, prices rise over time, but prices can also fall (a situation called deflation).

Detailed explanation-2: -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-3: -Based on speed, there are 4 different types of inflation – hyperinflation, galloping, walking, and creeping.

Detailed explanation-4: -Example: if petrol prices increase much more than the prices of other goods and services, people who use a car frequently may “feel” a rate of inflation that exceeds the HICP because their personal expenditure on petrol is higher than average.

Detailed explanation-5: -The annual inflation rate for the United States is 6.4% for the 12 months ended January 2023 after rising 6.5% previously, according to U.S. Labor Department data published Feb. 14. The next inflation update is scheduled for release on March 14 at 8:30 a.m. ET.