Question

______ is the first stage of inflation.

Options

• Creeping inflation

• Walking inflation

• Running inflation

• Hyper inflation

Answer 1

Creeping inflation is the first stage of inflation.

Explanation:

Creeping inflation refers to a mild and slow rise in prices, typically less than 3% annually. It is considered the first stage of inflation because the price rise is gradual and not alarming. It is usually manageable and not harmful to the economy, unlike more severe forms of inflation like running inflation or hyperinflation, which come later and involve much faster price increases.