Inflation is defined as a sustained increase in the price level or fall in the value of money. It occurs when the level of currency exceeds production. The value of money depreciates with inflation. There are different types of inflation including open, suppressed, galloping, creeping, and hyper inflation. Factors that can cause inflation include an increase in money supply, disposable income, deficit financing, and changes to agricultural and industrial growth. Ways to control inflation include monetary policies like credit control and demonetization, fiscal policies like reducing spending and increasing taxes and savings, and other measures to increase production and implement price controls.

3.  Inflation is defined as a sustained increase
in the price level or fall in the value of the
money.
When the level of currency of a country
exceeds the level of production, inflation
occurs.
Value of money depreciates with the
occurrence of inflation.

5. OPEN
INFLATION
SUPPRESSED
INFLATION
GALLOPING
INFLATION
CREEPING
INFLATION
HYPER
INFLATION

6. 1. OPEN INFLATION:-
Where there is no control on the rising
prices and prices are free to find their own
level, the inflation under this condition is
called OPEN INFLATION.
2. SUPPRESED INFLATION:-
When inflation takes place but at a lower
than the potential rate, due to the
measures taken by government.

7. 3. GALLOPING INFLATION:-
Very rapid inflation which is almost
impossible to reduce.
4. CREEPING INFLATION:-
When the general level of price rises at a
moderate rate over a long period of time, It
is called moderate inflation or creeping
inflation.

8. 5. HYPER INFLATION:-
Hyper Inflation is an extremely rapid period
of inflation, usually caused by rapid increase
in the money supply.

9. FACTORS ON DEMAND SIDE :-
• Increase in money supply
• Increase in disposable income
• Deficit financing
• Foreign exchange reserves

10. FACTORS ON SUPPLY SIDE :-
• Rise in administrated prices
• Erratic agriculture growth
• Agricultural price policy
• Inadequate industrial growth

12. 1. Monetary policy
 Credit control
 Demonetization of currency
 Issue of new currency
2. Fiscal policy
 Reduction in unnecessary expenditure
 Increase in taxes
 Increase in savings
 Surplus budgets
 Public debt
3. Other measures
• To increase production
• Rational wage policy
• Price control