Types of Inflation

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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.

e) Stagflation:-
– When prices continue to rise even though the country is in recession such situation is known as stagflation.

Also, Read:

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Top 10 Largest Economies of the World

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