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What is moderate inflation?

Updated: 8/22/2023
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11y ago

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Mild inflation is a slow rise in price level of no more than 5 percent per annum. It is associated with a low level of unemployment and is during the upswing phase of a trade cycle. Such creeping inflation has beneficial effects on an economy. It is a sign of a buoyant economy or an expanding economy, implying the generation of jobs, output and growth.

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10y ago
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11y ago

Based on the information that I've read, moderate inflation is the single digit increase in general price level.

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