{"id":11335,"date":"2022-05-17T15:21:00","date_gmt":"2022-05-17T09:51:00","guid":{"rendered":"https:\/\/www.oliveboard.in\/blog\/?p=11335"},"modified":"2022-05-25T23:38:30","modified_gmt":"2022-05-25T18:08:30","slug":"what-is-inflation","status":"publish","type":"post","link":"https:\/\/www.oliveboard.in\/blog\/what-is-inflation\/","title":{"rendered":"What is Inflation? Free PDF for BOI\/PNB Credit Officer Exam 2022"},"content":{"rendered":"<p><span style=\"color: #000000;\"><strong>What is Inflation:<\/strong> Inflation is one of the most common topics under the Banking Awareness section of the BOI\/PNB Credit Officer Exam 2022. A little knowledge about it can earn you a brownie point in your upcoming BOI\/PNB Credit Officer Exam 2022. Therefore, in the following article, we are providing you an overview of inflation, its causes and types as part of the banking awareness preparation. We suggest you save this handy guide as a PDF for your effective preparation.<\/span><\/p>\n<p style=\"text-align: center;\"><a href=\"https:\/\/www.oliveboard.in\/boi-credit-officer-mock-test\/\"><em><strong>ATTEMPT A FREE BOI CREDIT OFFICER MOCK TEST NOW<\/strong><\/em><\/a><\/p>\n<h3>Download the free &#8220;Inflation&#8221; Notes Pdf here<\/h3>\n<p style=\"text-align: center;\"><a href=\"https:\/\/www.oliveboard.in\/free-ebook-pdf-download\/?ref=contpn&amp;cat=banking&amp;next=https:\/\/bit.ly\/inflation-credit-officer\"><em><strong>DOWNLOAD THE FREE PDF NOTES HERE<\/strong><\/em><\/a><\/p>\n<h3>Sneak-peek into the free &#8220;Inflation&#8221; Notes pdf<\/h3>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone  wp-image-96120\" src=\"https:\/\/www.oliveboard.in\/blog\/wp-content\/uploads\/2022\/05\/Screenshot-2022-05-18-122829.png\" alt=\"BOI Credit officer\" width=\"528\" height=\"598\"><\/p>\n<h3><span id=\"How_To_Download_The_English_Practice_Questions_For_SBI_Clerk_Free_E-book\"><strong>How To Download The Free Inflation ebook?<\/strong><\/span><\/h3>\n<p><strong>Step 1:<\/strong>&nbsp;Click on the&nbsp;<strong>download link<\/strong>.&nbsp;You will be taken to Oliveboard\u2019s FREE E-Books Page.<\/p>\n<figure class=\"wp-block-image\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-92395\" src=\"https:\/\/www.oliveboard.in\/blog\/wp-content\/uploads\/2022\/02\/image-1-1.png\" alt=\"\" width=\"1206\" height=\"488\"><\/figure>\n<p><strong>Step 2:<\/strong>&nbsp;Register\/Login to the Free E-Books Page of Oliveboard (It is 100% free, You just enter your valid email ID and a password to be able to download the<em><strong> free inflation notes<\/strong><\/em>&nbsp;pdf<em><strong>.<\/strong><\/em><\/p>\n<p><strong>Step 3:<\/strong>&nbsp;After Logging in, you will be able to download the free e-book by clicking on&nbsp;<strong>\u201cclick here\u201d<\/strong>&nbsp;as shown in the snap below.<\/p>\n<figure class=\"wp-block-image\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-92397\" src=\"https:\/\/www.oliveboard.in\/blog\/wp-content\/uploads\/2022\/02\/image-4.png\" alt=\"\" width=\"1539\" height=\"755\"><\/figure>\n<h2>&nbsp;<\/h2>\n<h2>What&#8217;s there in the free pdf?<\/h2>\n<h3><span style=\"color: #008080;\"><strong>What is inflation?<\/strong><\/span><\/h3>\n<p><span style=\"color: #000000;\"><strong>Inflation<\/strong> is a sustained rate at which the general level of prices of goods or services is increasing, and at the same time, the rate of purchasing power of currencies are decreasing. <strong>Inflation <\/strong>is measured as an <strong>annual change in percentage<\/strong>.&nbsp;<\/span><span style=\"color: #000000;\">Prices of things rise over time under conditions of inflation and as it does, every currency you own buys a smaller percentage of service\/good. Therefore, when prices rise and currencies fall, you have<strong> inflation<\/strong>.<\/span><\/p>\n<p><span style=\"color: #000000;\">Purchasing power is the expression of the value of currencies. Purchasing power is the amount of tangible\/real goods\/services the money can buy at a moment in time. When there\u2019s inflation, there\u2019s the decline in the purchasing power of money.<\/span><\/p>\n<h4><span style=\"color: #008080;\"><strong>What causes inflation?<\/strong><\/span><\/h4>\n<p><span style=\"color: #000000;\">There\u2019s no single theory behind the cause of inflation that economists\/academics agree upon. However, there are a few commonly held hypotheses:<\/span><\/p>\n<h6><span style=\"color: #666699;\"><strong>1. Demand-pull inflation<\/strong><\/span><\/h6>\n<p><span style=\"color: #000000;\">According to the demand-pull inflation hypothesis, inflation is caused by an overall increase in demand for services and goods, which bids up their prices. If the demand for goods and services is growing at a faster rate than the supply, the prices will decrease. This usually occurs in economics that are rapidly growing.<\/span><\/p>\n<h6><span style=\"color: #666699;\"><strong>2. Cost-push inflation<\/strong><\/span><\/h6>\n<p><span style=\"color: #000000;\">According to cost-push inflation, inflation is caused when production costs of companies rise. When production costs (taxes, wages, imports, etc.) increase, companies increase the prices of their goods\/services to maintain their profit margins.<\/span><\/p>\n<h6><span style=\"color: #666699;\"><strong>3. Monetary inflation<\/strong><\/span><\/h6>\n<p><span style=\"color: #000000;\">According to this theory, inflation is caused by the excessive supply of money in economies. Prices of commodities are determined by their demand &amp; supply. When the supply is excess, the prices of commodities go down. If the commodity is money, excess supply of money reduces its value and the result is that the prices of everything else priced in currencies (dollars, rupees, etc.) must go up!<\/span><\/p>\n<p style=\"text-align: center;\"><a href=\"https:\/\/www.oliveboard.in\/boi-credit-officer-mock-test\/\"><em><strong>ATTEMPT A FREE BOI CREDIT OFFICER MOCK TEST NOW<\/strong><\/em><\/a><\/p>\n<h3><span style=\"color: #008080;\"><strong>What are the different types of inflation?<\/strong><\/span><\/h3>\n<h6><span style=\"color: #666699;\"><strong><u>Creeping inflation:<\/u><\/strong><\/span><\/h6>\n<p><span style=\"color: #000000;\">Creeping is mild inflation, which occurs when there is a price rise of 3% or less a year. According to the Federal Reserve, when there\u2019s a rise of 2% or less in prices, it benefits the economic growth. The creeping inflation makes consumers expect that the prices will keep increasing, which in turn boosts demand for goods and services, as consumers now want to buy a lot to beat the future prices. And this is how creeping inflation drives economic expansion. This is also the reason for Federal Reserve to set 2% as its target inflation rate.<\/span><\/p>\n<h6><span style=\"color: #666699;\"><strong><u>Walking inflation:<\/u><\/strong><\/span><\/h6>\n<p><span style=\"color: #000000;\">Walking is stronger inflation, somewhere with a price rise between 3% to 10% a year. Walking inflation is harmful to the economy, as it accelerates economic growth (too fast). As a result, consumers start purchasing goods\/services more than their requirements to avoid higher future prices. This further increases the demand so much that it\u2019s challenging for suppliers to keep up with the demands. This results in common services\/goods being priced out of reach of most people.<\/span><\/p>\n<h6><span style=\"color: #666699;\"><strong><u>Galloping inflation:<\/u><\/strong><\/span><\/h6>\n<p><span style=\"color: #000000;\">When inflation rises to 10% of more, there\u2019s havoc wrecked on the economy. The currencies lose value so drastically that the incomes of employees and businesses can\u2019t keep up with prices and costs. This leads to instability in the Economy and a loss in the credibility of the government leaders. This is the type of inflation that must be prevented at all costs.<\/span><\/p>\n<p style=\"text-align: center;\"><a href=\"https:\/\/www.oliveboard.in\/boi-credit-officer-mock-test\/\"><em><strong>ATTEMPT A FREE BOI CREDIT OFFICER MOCK TEST NOW<\/strong><\/em><\/a><\/p>\n<h6><span style=\"color: #666699;\"><strong><u>Hyperinflation:<\/u><\/strong><\/span><\/h6>\n<p><span style=\"color: #000000;\">An increase in inflation beyond the inflation range of 2 or 3%, could lead to hyperinflation, a condition where inflation quickly rises out of control. Hyperinflation occurs when prices skyrocket more than 50% a month. Hyperinflation is a rare phenomenon. Some examples of hyperinflation are Germany in the 1920s, Zimbabwe in the 2000s, and America during its civil war.<\/span><\/p>\n<h6><span style=\"color: #666699;\"><strong><u>Stagflation:<\/u><\/strong><\/span><\/h6>\n<p><span style=\"color: #000000;\">Stagflation is when the growth in the economy becomes stagnant, but there\u2019s still price inflation. This seemingly contradictory phenomenon is rare like hyperinflation but can create havoc in the economy by combining high unemployment rate, severe inflation, and poor economic growth. Stagflation is a huge challenge to Central banks, due to the increase in risks associated with monetary policy responses and fiscal. Central banks usually increase interest rates to combat high inflation, but doing so during stagflation could increase unemployment further. Therefore, central banks need to keep a limit on their ability to decrease rates during stagflation. Possibly the most difficult inflation to manage.<\/span><\/p>\n<h6><span style=\"color: #666699;\"><strong><u>Core inflation:<\/u><\/strong><\/span><\/h6>\n<p><span style=\"color: #000000;\">This type of inflation measures the rising prices of all commodities except energy and food, due to the fact that gas prices increase every summer.<\/span><\/p>\n<h6><span style=\"color: #666699;\"><strong><u>Wage inflation:<\/u><\/strong><\/span><\/h6>\n<p><span style=\"color: #000000;\">Wage inflation occurs when the wages of workers rise faster than the cost of living. Wage inflation occurs when there are labor unions demanding higher wages, when workers control their pay, or when there\u2019s a shortage of workers.<\/span><\/p>\n<h6><span style=\"color: #666699;\"><strong><u>Asset inflation:<\/u><\/strong><\/span><\/h6>\n<p><span style=\"color: #000000;\">Asset inflation refers to an increase in the prices of one asset class (gold, oil, housing, etc.). Asset inflation is often overlooked by inflation watchers when the overall inflation is low.<\/span><\/p>\n<p><span style=\"color: #000000;\">We hope the above <strong>notes<\/strong> on &#8220;<strong>What is Inflation&#8221;<\/strong>, its causes, and types help you in your <strong>Banking Awareness preparation for BOI\/PNB Credit Officer Exam 2022.<\/strong><\/span><\/p>\n<p><\/p>\n\n\n<div class=\"wp-block-buttons aligncenter is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link\" href=\"https:\/\/www.oliveboard.in\/blog\/what-is-inflation-in-hindi\/\">\u0907\u0938 \u092c\u094d\u0932\u0949\u0917 \u0915\u094b \u0939\u093f\u0902\u0926\u0940 \u092e\u0947\u0902 \u092a\u0922\u0928\u0947 \u0915\u0947 \u0932\u093f\u090f \u092f\u0939\u093e\u0902 \u0915\u094d\u0932\u093f\u0915 \u0915\u0930\u0947\u0902 <\/a><\/div>\n<\/div>\n\n\n","protected":false},"excerpt":{"rendered":"<p>What is Inflation: Inflation is one of the most common topics under the Banking Awareness section of the BOI\/PNB Credit<\/p>\n","protected":false},"author":2,"featured_media":96129,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1,31,1212,60,62,2586,601,466],"tags":[4081,4093,3479,3478,4094,4074,4083,4092,4090,4084,4080,4079,4089,4078,4076,4087,4086,4091,4075,4082,4088,4085,4077],"class_list":["post-11335","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-articles","category-bank-exams","category-featured","category-general-knowledge","category-government-exams","category-notes","category-other-banking","category-other-gov-exams","tag-3-types-of-inflation","tag-banking-awareness-capsule","tag-banking-awareness-pdf","tag-banking-awareness-questions-and-answers","tag-banking-awareness-topics","tag-causes-of-inflation","tag-causes-of-inflation-in-economics","tag-causes-of-inflation-ppt","tag-consequences-of-inflation","tag-creeping-inflation","tag-effects-of-inflation","tag-how-is-inflation-measured","tag-inflation-causes-and-effects","tag-inflation-examples","tag-inflation-in-india","tag-inflation-types-and-causes","tag-levels-of-inflation","tag-remedies-of-inflation","tag-types-of-inflation","tag-types-of-inflation-in-india","tag-types-of-inflation-pdf","tag-walking-inflation","tag-what-is-inflation-rate","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-50"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.6 (Yoast SEO v26.6) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>What is Inflation? 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