ICSE Class X Economics 2020 Solved Papers

Question : 7 of 36

Marks: +1, -0

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.

Go to Question:

Prev Question

Next Question