CSV

Types of Inflation - CSV

Inflation is an economic phenomenon where the general price level of goods and services rises continuously over time. It is primarily classified into two types: demand-pull inflation and cost-push inflation. Demand-pull inflation occurs when aggregate demand exceeds aggregate supply, while cost-push inflation arises when short-run aggregate supply decreases due to rising production costs. Understanding these types is crucial for policymakers to implement effective inflation control measures and maintain economic stability.

inflation demand-pull cost-push economics price increase supply and demand macroeconomics

code,slug,name,description,causes,characteristics
01,demand-pull-inflation,Demand-Pull Inflation,Inflation that occurs when aggregate demand exceeds aggregate supply.,"[""Increased consumer spending"",""Expansion of government spending"",""Investment surge"",""Export growth"",""Monetary easing policy""]","[""Demand-driven"",""Accompanied by economic growth"",""Tendency toward employment improvement"",""Can worsen due to supply constraints""]"
02,cost-push-inflation,Cost-Push Inflation,Inflation that occurs due to rising costs of production.,"[""Wage increases"",""Surging oil and energy prices"",""Rising raw material costs"",""Exchange rate depreciation"",""Cost increases from tighter regulations""]","[""Supply-side factors"",""Not accompanied by economic growth"",""Decline in real wages"",""Risk of stagflation""]"
03,built-in-inflation,Built-In Inflation,Inflation where past inflation expectations are reflected in current wage and price setting.,"[""Entrenched inflation expectations"",""Adaptive expectations"",""Wage-price spiral"",""Increasing index-linked contracts""]","[""Self-reinforcing"",""Expectations-driven"",""Difficult to control"",""Spiraling vicious cycle""]"