While the rate of inflation is already into double digits in India riding on top of spiralling crude prices here's a quiz that takes you through different types of inflation, how it is measured in India and how it affects ordinary Indians like you and me.
1. What does inflation mean?
A general rise in the price of food grains
A general rise in the level of prices
Wrong! Increase in prices of food grains also contributes to inflation. But it is not the only component used for calculating inflation.
Right! Increase in inflation leads to increase in prices of goods and services that you buy or avail of. Inflation can be measured by an index called as wholesale price index or consumer price index. Different countries use different measures to calculate inflation.