The classifications of a sustained price rise by its cause (demand-pull or cost-push) and by its pace (creeping, walking, galloping, or hyperinflation).
- Demand-pull inflation: too much money chasing too few goods, when aggregate demand outruns supply (often from loose monetary or fiscal policy).
- Cost-push inflation: rising costs of inputs (wages, fuel, imported raw materials) push prices up even without extra demand; supply shocks like high oil prices are a common trigger.
- By pace: creeping (mild, low single digits), walking (faster), galloping (very high double or triple digits), and hyperinflation (extreme, runaway price rise that destroys the currency).
- Stagflation: high inflation together with stagnant growth and high unemployment, breaking the usual trade-off.
- Headline inflation includes all items; core inflation strips out volatile food and fuel; see concept core inflation and concept inflation.
- Deflation is a sustained fall in prices, and disinflation is a slowing of the inflation rate (prices still rise, but more slowly).
The demand-pull versus cost-push split, the pace categories (up to hyperinflation), and stagflation are standard statement-based and matching facts.
Demand-pull (excess demand) versus cost-push (rising input costs); deflation (prices fall) versus disinflation (inflation slows but prices still rise); stagflation combines high inflation with stagnation.
By cause, demand-pull and cost-push; by pace, creeping to hyperinflation; stagflation is inflation plus stagnation.