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Different Types of Time-Period and Scope/Coverage based Inflation?

What is Inflation and Impact of Inflation?

According to the nature of "Time-Period Occurence of Inflation" are divided into Three types.

i) War-Time Inflation
During time of wars, an urgent demand for production of war related goods and services results in incrased public expenditure ordered by government.  Due to this, the supply decrease and develops an inflationary gap.

ii) Post War Inflation
This Inflation arises immediately after the war when tax is withdrawn or debts of public are paid back oor when income for disposable items increases.

iii) Peace Time Inflation
Increase in level of prices during a period of peace.  This occurs due to governemnts starting new projects with a lon development period.  Therefore a gap increase between income and real wage good, thus governement raises its expenditure and in turn price rise.

According to the nature of "Scope or Coverage of Inflations" are divided into Two types.

i) Comprehensive Inflation
Comprehensive inflation results in rise in price of all goods produced in an economy.  It refers to general rise in prices.  It is also called Economy-Wide Inflation.

ii) Sporadic Inflation
Sporadic Inflation is a situational inflation in which the prises of a group of particular goods due to shortage of supply.
For example: Prices of mangoes in summer goes high when there is less supply.

Related Topic.
Different Types of Rate Inflation?


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