Q. How the so called "galloping inflation" is different from the "run-away inflation"?
- While "galloping inflation" is persistently high inflation, "run-away inflation" is short term inflationary trend
- While "galloping inflation" pertains to retail prices, "run-away inflation" pertains to wholesale prices
Select the correct option from the codes given below:
Answer:
Neither 1 nor 2
Notes: When inflation, increase of prices, is in double digit, it is called galloping inflation. Run-away inflation is linked to interest rate linked increase in prices which is difficult to control.