Q. “There is a price rise of one or a small group of commodities over a sustained period of time” – described as?
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: Ramesh Singh