Multiple choice

What is the term for inflation when the general price level increases at the rate of about 5-6 per cent per annum?

  1. Creeping inflation

  2. Walking inflation

  3. Running inflation

  4. Hyper inflation

  5. Galloping inflation

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Economists classify inflation by its annual rate: creeping inflation (1-3%), walking inflation (3-10%), running inflation (10-20%), and hyperinflation (extremely high). Walking inflation at 5-6% indicates moderate but noticeable price increases that can signal emerging economic pressures. This range requires attention but isn't yet alarmingly rapid.