The effects of infllation on consumer behavior,

Mar 30th, 2015
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The types of inflation, measurement of inflation and problems of price indices

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EFFECTS OF INFLATION ON CONSUMER BEHAVIORTypes of Inflation Low to Moderate InflationThis is sometimes referred to as Creeping Inflation. This ranges between 1-2%. This is faced by most of the stable countries in the world and most of the countries strive to maintain the inflation rate within this range. But depending on the economic state of a country this can reach up to 6%.This type of inflation can be considered a natural rate of inflation because it is impossible to eliminate inflation completely even by the most developed countries. High InflationThis can also be referred to as Chronic Inflation because the high inflation rate may persist over a long period of time without any downward movement.This is faced by some of the industrialized and developing countries. The rate of

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