Question

When the rate of inflation is between 20 to 100 percent per annum then it is called as ______ inflation.

Options

• Running

• Walking

• Galloping

• Mild

Answer 1

When the rate of inflation is between 20 to 100 percent per annum then it is called as galloping inflation.

Explanation:

Galloping inflation occurs when the rate of inflation is between 20% to 100% per annum. This stage is characterised by a very rapid increase in prices, which can significantly disrupt the economy, leading to uncertainty and a decrease in the value of money. It is more severe than running inflation but not as extreme as hyperinflation.