TSV

Types of Inflation - TSV

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"]