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Inflation - Coggle Diagram
Inflation
Features of Inflation
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Reduces real disposable income, savings falls
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Inflation Data
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Inflation Targeting: Aiming to control inflation and not allowing it to go beyond the target rate of inflation. It promotes confidence in the economy
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Demand Pull Inflation
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When the economy is near to productive capacity an increase in AD will push the price up. Usually associated with overheating in the economy
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Cost Pull Inflation
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Worst form of inflation as costs like oil prices and import costs can’t be always controlled, especially if importing raw materials, by the economy unlike demand pull inflation
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