Daily Point 2038 - Galloping Inflation

 

The Banking Tutor

Daily Point 2038

Galloping Inflation 

If mild inflation is not checked and if it is uncontrollable, it may assume the character of galloping inflation. Galloping inflation (also jumping inflation) is one that develops at a rapid pace (dual or triple-digit annual rates), perhaps only for a brief period of time. Such form of inflation is dangerous for the economy as it mostly affects the middle and low-income classes of population. Importantly, the galloping inflation can precipitate an economic depression. Nevertheless, the galloping inflation can still be accompanied by the real economic growth.

Sekhar Pariti

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