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Types Of Inflation: Rate Based Inflation
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This lesson is in continuation of the previous lesson on the Types of Inflation. It continues and completes the last type of Caused Based Inflation and begins with the types of Rate based Inflation: Creeping Inflation, Trotting Inflation, Hyper-Inflation and Galloping Inflation.

Ayussh Sanghi is teaching live on Unacademy Plus

Ayussh Sanghi
Passionate Educator - CSE / Other Govt Exams [Peep into my Unacademy Plus Courses & experience awesome learning.]
Unacademy user
all lessons of Grammar simply superb mam easy to understand
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Shalini Bhatt
2 months ago
Thank you
sir in Ramesh Singh , hyperinflation is said to touch even four digits and they gave the German example post WW1 when the prices rose to 36billion times higher
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I think no book can substitute Ayushh sir class.....sir please make more lessons for prelims & mains....Also please make video on how to prepare for mains & how to read news paper - economy portion....
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the inflation which ranges from 1%to 4%is called creeping inflation. the inflation which ranges from 5 %to 10% is called trotting inflation. the inflation running in the range of double digit (20%,100%,200%etc.) is called galloping inflation (also called as hopping ,jumping,running inflation ).i.e,many latin american countries like chille ,argentina and brazil in 1970 and 80s had such rates of inflation in the range of 50 to 700%. same in the case of russian economy after the disintegration of ex-USSR . and then there is hyper inflation (very large and accelerating which might have the annual rates in million and billion or even trillion. in this type of inflation the increase takes place in a very short span of time ,price shoot up overnight . ex - german economy at the time of 1923 , prices were 36 billion times higher than two year earlier .
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thank you Ayussh sir, your video are so awesome that my economics books started getting dust on it
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very helpful lesson for understanding all the inflations, thank you sir
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  1. Inflation BY AYUSSH SANGHI Types of Inflation - Part 4.3


  2. ABOUT ME >Passionate about Teaching >Taught at most reputed Civil Services Institutes >CA, Lawyer Follow me on: https://unacademy.in/user/ AyusshSanghi


  3. Inflation can be divided in Types Inflation can be divided in types on the following basis: Cause Based Inflation Rate Based Inflation


  4. Rate Based Inflation Through this lesson we would understand the various types of inflation on the basis of cause: . Demand Pull Inflation Cost Push Inflation . Pricing Power Inflation Sectoral Inflation


  5. Sectoral Inflation It takes place when there is an increase in the price of the goods and services produced bv a certain sector of industries. Example: An increase in the cost of crude oil would directly affect all the sectors that use crude as an input. Thus, the increasing price of fuel has become an important issue related to the economy all over the world.


  6. Example Increment in Airfare In Aviation industry when the price of oil increases, the ticket fares also go up.


  7. Creeping Inflation . It occurs when the inflation rate is in the range of 1% to 5%. Such inflation erodes the purchasing power of money, but is referred to as manageable and sometimes inevitable in a growing economy


  8. Trotting Inflation . It lies in the range of 5% to 10%, which is higher than Creeping Inflation. If Creeping Inflation is not looked at the economists then it may lead to Trotting Inflation.


  9. Hvper Inflation It is the extremely rapid escalation of prices (can be more than 50% per month) for goods and services. The most famous hyperinflation of the modern era occurred in Germany in 1920-1923 when the government began printing money to make up for revenue lost. The German hyperinflation resulted in a percentage increase in prices in the millions per month


  10. Hvper Inflation Other cases of hyperinflation (Greece, Hungary) following World War II were even more extreme. The root cause of hyperinflation tends to be the excessive printing of currency by the monetary authority Hyperinflation is extremely disruptive by making savings worthless very quickly, thus encouraging workers to spend money as fast as it is earned.