TYPES OF INFLATION

a) Wage Inflation :-
- Price of product/service increases due to the increase in wages.
- Inflation caused due to this is known as wage inflation.

b) Pricing Power Inflation :-

- When businessmen/individuals purposely raise their product
prices to increase their profits such inflation is known as pricing
power inflation.

c) Cost Push Inflation :-
- If the price of product increases due to the increase in
production or maintenance cost such inflation is called cost
push inflation.

d) Sectoral Inflation :-
- If increase in price of one product directly effects increase in
the price of other product.

e) Stagflation :-
- When prices continue to raise even though the country is in
recession such situation is known as stagflation.