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Structural Inflation refers to inflation caused due to:
shortage of food, low saving rate and other supply constraints
Shortage of money supply
structural changes like liberalisation & globalisation
Rising prices of important inputs
4th option is correct. Structural inflation happens when the government prints money more rapidly than the growth in output (the number of goods and services in the economy) and we see a rise in prices. Inflation is not caused merely by the excess of demand over supply but built into an economy due to the government's monetary policy.
By: Abhipedia ProfileResourcesReport error
Navneet Kaur
Inflation due to rise in prices of important inputs should be Cost Push Inflation. Probably no correct options for this question from the given 4
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