INFLATION

WHAT IS INFLATION?

• The anual increase in the cost of goods and services.

CAUSES OF INFLATION.

• The decrease of supplies.
• Devaluation of the money.
• The increase in the price of material raw.
• Higher taxes.

THE 4 MAIN TYPES OF INFLATION

• Creeping inflation: from 0% to 3% per year.
• Walking inflation: from 3.1% to 10% per year.
• Galloping inflation: from 10.1% or greater per year.
• Hyperinflation: more than 50% in a month, 600% per year.

EXAMPLE OF THE TYPES OF INFLATION.

• Creeping inflation: in India 2005, the cereals increase its price in a 3.68%.
• Walking inflation: in india 2008-2009 the of rice increase in 7.01
• Galloping inflation: in India 2009 - 2010, the price of sugar increase in a 50%.
• Hyperinflation: In the civil war of U.S. the confederaste government print a huge a mount of money to pay for the war.