What are the different types of inflation?

There are several different types of inflation that can affect an economy, including demand-pull inflation, cost-push inflation, and built-in inflation. Demand-pull inflation occurs when there is an increase in demand for goods and services, causing prices to rise. Cost-push inflation, on the other hand, occurs when the cost of production increases, leading to higher prices for consumers. Built-in inflation refers to inflation that is embedded in the economy due to past price increases and expectations of future price increases. Each type of inflation poses unique challenges for policymakers in managing the overall health of the economy.

This mind map was published on 11 June 2024 and has been viewed 25 times.