a) Wage Inflation:-
– Price of product/service increases due to the increase in wages.
– Inflation caused due to this is known as wage inflation.
b) Pricing Power Inflation:-
– When businessmen/individuals purposely raise their product prices to increase their profits such inflation is known as pricing power inflation.
c) Cost-Push Inflation:-
– If the price of product increases due to the increase in production or maintenance cost such inflation is called cost push inflation.
d) Sectoral Inflation:-
– If the increase in price of one product directly effects increase in the price of other product.
– When prices continue to rise even though the country is in recession such situation is known as stagflation.