Question

Distinguish between running inflation and hyper inflation.

Answer 1

	Running Inflation		Hyper Inflation
(i)	When there is a rapid increase in prices in a very short period, it is called running or galloping inflation.	(i)	It refers to a situation when prices rise at an unexpected rate. There is an escalation of price rise.
(ii)	Such an inflation has an adverse affect on the middle and poor classes.	(ii)	Such an inflation results into utter confusion in the economy. It completely wiped away fixed income groups and poor classes of society.