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Based on speed, there are 4 different types of inflation – hyperinflation, galloping, walking, and creeping. When the inflation is 50% a month, then it leads to hyperinflation. This happens very rarely, some of the examples are Venezuela in the recent past, Zimbabwe in the 2010s and Germany in 1920s. You can read about The Reserve Bank of India: Functions and Composition in the given link.
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When inflation is more than 10%, then it is known as galloping inflation. When the rise in prices is 3% to 10% in a year, then it is known as walking inflation. When the rise in prices is 3% or less, then it is known as creeping inflation.
Further readings:
- Indian Economy Notes for UPSC Civil Service Exam
- Monetary Policy – Objectives, Monetary Policy Committee, Instruments of Monetary Policy
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Inflation in Economy- Types of Inflation, Inflation Remedies, Effect of Inflation | |
