TYPES OF INFLATION **************** 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 increase in price of one product directly effects increase in the price of other product. e) Stagflation :- - When prices continue to raise even though the country is in recession such situation is known as stagflation.
Posted on: Wed, 23 Apr 2014 05:48:29 +0000
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