Q. “It is a price rise of one or a small group of commodities over a sustained period of time, without a traditional designation” is related to which of the following?

[A] Skewflation

[B] Inflation

[C] Stagflation

[D] Hyper Inflation

Answer: A
Notes:

Explanation: Economists usually distinguish between inflation and a relative price increase.

  • ‘Inflation’ refers to a sustained, across-the-board price increase, whereas ‘a relative price increase’ is a reference to an episodic price rise pertaining to one or a small group of commodities.
  • This leaves a third phenomenon, namely one in which there is a price rise of one or a small group of commodities over a sustained period of time, without a traditional designation.
  • ‘Skewflation’ is a relatively new term to describe this third category of price rise.

Source:  TMH Ramesh Singh