What Causes Inflation?

What Is Inflation?

5 Major Causes of Inflation

FAQs About Cause of Inflation

What are the impacts of inflation?

Some notable effects of inflation can be decreasing consumer purchasing power, increasing credit interest rates, and accelerating economic growth. Moreover, once the prices surge, there is no return. Also, it has a harsh effect on people with limited income.

What are the types of inflation?

The two types of inflation include true and partial inflation, creeping and runaway inflation, deficit-induced and wage-induced inflation, currency and credit inflation, sellers’ inflation, and profit and commodity inflation.

How can you protect yourself from inflation?

You can protect yourself from inflation by investing in the stock market, switching to a high-yield savings account, and diversifying your financial portfolio.

How to control inflation?

The government usually takes several monetary measures, including monitoring the cash reserve ratio, changing bank rate policy, and reviewing open market operations to control inflation.