DEMAND PULL INFLATION – Inflation caused by excessive demand without a relative increase in supply of goods and services. In this case, supply of goods/ services persistently fail to keep pace with the demand for goods thereby making the price of goods to go high.
COST PUSH INFLATION – Inflation caused by an increase in the cost of production such as payment for labour, cost of equipment and the cost of raw materials used in production process.
WAGE INDUCED INFLATION – Inflation caused by excessive demand by the trade union, which in most cases affects the cost of production. It means when workers demands for increase in their labour (wages).
GALLOPING INFLATION – Inflation caused by government excessive expenditure especially on capital projects such as construction of roads, building of bridges, houses and hospitals.
IMPORTED INFLATION – Inflation caused by excessive importation of goods. Though, this type of inflation is common with countries that rely heavily on imported goods.
HYPER INFLATION – This is a situation when money losses its purchasing power. That is, when the purchasing power of Naira (money) is de-valued.
ARTIFICIALLY CREATED INFLATION – Inflation caused as a result of traders hoarding some goods with the motive of increasing the price thereby creating artificial scarcity of such goods. This situation often keep the buyers in no choice other than paying any amount the sellers demands of them since the goods are in short supply.