What is Inflation?
To put it simply, inflation is defined as the rate of increase in the general price levels of goods and services in a particular economy. The two main types of inflation are:
1) Demand-pull inflation:
This inflation type stems from an increase in credit and money supply, and the consequent rise in demand for goods and services. This increase in demand is greater and faster than the resulting increase in production capacity, thereby leading to product and service shortages and higher prices.