Differentiate between creeping and running ...

ICSE Class X Economics 2018 Papers

Question : 15 of 35

Marks: +1, -0

Differentiate between creeping and running inflation.

Solution:

Difference between Creeping Inflation and Running Inflation :

Creeping Inflation	Running Inflation
1. Creeping inflation occurs when there is a sustained rise in prices over time at a mild rate, say around $2\%$ to $3\%$ per year. It is also called mild inflation.	When the sustained rise in prices is over $8\%$ and generally around $10\%$ p.a. is called running inflation.
2. This type of inflation is not much of a problem and is good for healthy functioning of economy.	This type of inflation is a warning signal indicating the need for controlling it.

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