Question

What is the meaning of creeping inflation?

What is creeping inflation?

What does creeping inflation mean?

Explain the following:

Creeping inflation

Answer 1

1. Creeping inflation is the term for the sort of inflation that occurs when the public's level of a commodity basket rises over time with a slow and relatively mild increase.
2. The rate at which prices rise in the event of creeping inflation varies from 1% to 3%.
3. Since creeping inflation is seen as safe and necessary for economic growth, it presents a manageable problem for policymakers. It is also predictable and manageable.