TYPES OF INFLATION:

Depending upon the range of increase, and its severity, inflation may be classified into three broad categories.

□ LOW INFLATION.

⏺Such inflation is slow and on predictable lines, which might be called small or gradual 

 

⏺ Low inflation takes place in a longer period and the range of increase is usually in ‘single digit’.

 

⏺ Such inflation has also been called as ‘creeping inflation’.

□ GALLOPING INFLATION.

⏺ This is a ‘very high inflation’ running in the range of double-digit or triple digit (i.e., 20 per cent, 100 per cent in a year)

⏺ Other names to this inflation are hopping inflation, jumping inflation and running or runaway inflation.

□ HYPER INFLATION.

⏺ This form of inflation is ‘large and accelerating’ which might have the annual rates in million or even trillion.