Types of inflation: Understanding the types of inflation

Understanding the types of inflation, their meaning, causes and consequences is essential in protecting against the adverse effects of inflation on the economy. Discover the complexities of inflation, including stagflation, hyperinflation, and deflation. Learn their causes, effects on the economy, and key economic theories. Inflation is when a country's economy sees an increase in the prices of products and services due to a decline in purchasing power. David Hume first proposed the concept in the 18th century. Inflation types include demand pull, cost pull, creeping, galloping, and hyperinflation. In this situation, borrowers, businessmen, entrepreneurs, farmers, and employees enjoy the profits. It is mainly caused by increased monetary supply, government policies, rate fluctuations, and similar things ... Inflation is categorised by the rate at which prices increase. Based on rate, inflation can be classified as creeping inflation, walking inflation (Trotting Inflation), galloping inflation (Hopping or Running Inflation), or hyperinflation.