Q. Which among the following is a clear indicator of inflation?
Answer: slower growth of prices than before
Notes: The correct answer is "lower growth of prices than before." Inflation is characterized by a general increase in prices over time. When the growth rate of prices slows down, it indicates that inflation is not accelerating, which can be a sign of economic stability or deflationary pressures. Historically, inflation is measured by indices like the Consumer Price Index (CPI), which tracks price changes in a basket of goods and services.
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