Which one of the following inflation is the type of inflation that results from past events and persists in the present?

Hyperinflation

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Sogflation

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Built-in inflation

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Biflation

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Solution

The correct option is C Built-in inflation
Some events in the past, such as a persistent demand pull or a supply shock (cost-push inflation) push the prices of goods and services upwards, and this persists for a long time. Such a condition results in built-in inflation.

Suggest Corrections

List - I (Type of Inflation)	List - II (Characteristic)
A. Demand-pull Inflation	1. Initially price rises
B. Cost-push Inflation	2. Price-rise controlled by rationing and other means
C. Suppressed Inflation	3. Inflation in which prices increase as a result of increased production costs, as labour and raw materials, even when demand remains the same
D. Creeping Inflation	4. Inflation in which rising demand results in a rise in prices. 5. Fall in price of raw materials