Q. Which of the following best describes ‘Galloping Inflation’?

[A] A gradual rise in the general price level, typically in the range of 1–5% annually

[B] A sharp but temporary increase in prices, followed by quick stabilisation

[C] A rapid increase in prices at double- or triple-digit annual rates, typically between 10% and 50%, severely affecting economic stability and purchasing power

[D] A fall in the general price level sustained over time, often indicating economic contraction

Answer: C
Notes:

Explanation:

  • Galloping inflation is a rapid increase in prices at double- or triple-digit annual rates, typically between 10% and 50% annually.
  • It disrupts macroeconomic balance and harms consumer purchasing power.

Source: Indian economy (Dr.Ramesh Singh)

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