Contents

1. Definition of Inflation 135

2. Types of Inflation (on the basis of rate of inflation) 135

3. Types of Inflation (based on causes) 135

4. Associated Terms 135

5. Causes of Inflation 136

6. Impact of Inflation 137

7. Measures to Curb Inflation and their Limitations 138

8. Measures of Inflation 139

8.1. Inflation measurement based on period 139

8.2. GDP Deflator 140

8.3. Wholesale Price Index (WPI) 140

8.4. Consumer Price Index (CPI) 142

8.5. Services Price Index (SPI) 144

8.6. Likely effect of GST on inflation rates 144

9. Recent Policy Measures to control inflation 145

9.1. Advantages of Monetary Policy Committee 145

9.2. Apprehensions against Monetary Policy Committee 145

10. GS Mains Test Series Questions 146

11. Previous Year UPSC GS Mains Questions 147