Q.Distinguish between creeping inflation and hyperinflation, and between open inflation and repressed inflation.

Inflation is also classified by how fast prices rise, and by whether the government artificially suppresses the rise.

By speed:

• Creeping inflation is a mild, slow rise in the general price level, broadly up to about 3% a year, generally regarded as consistent with healthy economic growth.
• Hyperinflation is the opposite extreme — an extremely rapid, largely uncontrolled rise in prices, where the value of money can fall almost daily and the currency may, in severe cases, effectively cease to function as money at all.

By government control:

• Open inflation occurs when the government allows prices to rise freely, without administrative intervention such as price ceilings or rationing. …

Assuming repressed inflation means the inflation problem has been 'solved' because prices are not officially rising — the underlying excess demand or cost pressure is still present and typic …