Inflation is derived from the Latin verb inflare, which means "to blow up or inflate," and it was first used in a monetary context in 1838 to denote "an increase in the amount of money." Inflation is the gradual loss of a currency's buying value. The increase in the average price level of a basket of selected goods and services in an economy over a period of time can be used to calculate a quantitative estimate of the rate at which buying power declines. A rise in the general level of prices, commonly stated as a percentage, indicates that a unit of currency now buys less than it did previously. Deflation, on the other hand, occurs when money's purchasing power rises but prices fall. The different types of inflation are Creeping inflation- When prices rise at a rate of less than 3% per year, it is called creeping or moderate inflation., Walking inflation- This high, or damaging, inflation ranges from 3 to 10% every year. It is bad for the economy because it accelerates economic growth too quickly., Galloping inflation- When inflation reaches 10% or above, the economy is completely destroyed., Hyperinflation- When prices rise by more than 50% in a month, it is called hyperinflation.

Shashank Katariya

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