ICSE Class X Economics 2020 Solved Papers

Question : 7

Total: 36

Give any two points of differentiation between creeping inflation 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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