Question

Observe the relationship of the first pair of words and complete the second pair.

2 – 3% per annum is Creeping Inflation, 10 – 20% per annum is ______.

Options

• Walking Inflation

• Running Inflation

• Hyper Inflation

• Galloping Inflation

Answer 1

2 – 3% per annum is Creeping Inflation, 10 – 20% per annum is running inflation.

Explanation:

Creeping inflation means a slow and controlled increase in prices, usually around 2–3% per year. When the rate of inflation rises to about 10–20% per year, it is called running inflation, which leads to fast price rises and needs strict control measures to stop it from worsening.