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Question
What is walking inflation?
Answer in Brief
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Solution
- Walking inflation is defined as an increase in the average price level of a commodity basket at a controlled rate that does not immediately threaten the stability of the economy.
- Walking inflation is the term used to describe inflation that falls between 3% and less than 10%. Although walking inflation is usually seen as a sign of a healthy economy, it might be concerning if it continues for an extended period of time.
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