Match the types of inflation with their characteristics:

Type of Inflation Characteristics

A. Creeping Inflation 1. Extreme inflation with prices rising over 50% monthly

B. Walking Inflation 2. Gradual price increase, usually below 3% annually

C. Galloping Inflation 3. Rapid price increase between 10% and 50%, disrupting stability

D. Hyperinflation 4. Moderate price rise between 3% and 10%, risking economic overheating

Select the correct answer using the following Codes:

Question

Creeping Inflation (Mild or Low Inflation): A gradual increase in prices, usually less than 3% annually, which is considered manageable and may positively stimulate demand and investment.
Walking Inflation (Trotting Inflation): Prices increase at a moderate pace, generally around 3% to 10% per year. If unchecked, it can lead to economic overheating.
Galloping Inflation (Hopping or Running Inflation): This inflation occurs when prices increase rapidly at double—or triple-digit annual rates, between 10% and 50%. It disrupts economic stability and can severely affect consumer purchasing power.
Hyperinflation: An extreme form of inflation where prices rise over 50% monthly. Hyperinflation can decimate a currency’s value, as seen historically in Zimbabwe and Germany’s Weimar Republic.

GKToday Admin · Accepted Answer

A-2, B-4, C-3, D-1

Creeping Inflation (Mild or Low Inflation): A gradual increase in prices, usually less than 3% annually, which is considered manageable and may positively stimulate demand and investment.
Walking Inflation (Trotting Inflation): Prices increase at a moderate pace, generally around 3% to 10% per year. If unchecked, it can lead to economic overheating.
Galloping Inflation (Hopping or Running Inflation): This inflation occurs when prices increase rapidly at double—or triple-digit annual rates, between 10% and 50%. It disrupts economic stability and can severely affect consumer purchasing power.
Hyperinflation: An extreme form of inflation where prices rise over 50% monthly. Hyperinflation can decimate a currency’s value, as seen historically in Zimbabwe and Germany’s Weimar Republic.

Current Affairs

Type of Inflation	Characteristics
A. Creeping Inflation	1. Extreme inflation with prices rising over 50% monthly
B. Walking Inflation	2. Gradual price increase, usually below 3% annually
C. Galloping Inflation	3. Rapid price increase between 10% and 50%, disrupting stability
D. Hyperinflation	4. Moderate price rise between 3% and 10%, risking economic overheating