economics hard MCQ

What does the term 'Skewflation' refer to in economics?

  1. Continuous hyperinflation across all sectors
  2. Simultaneous inflation in some sectors and deflation in others
  3. Deflation accompanied by high unemployment
  4. Inflation caused solely by currency printing

Answer: Simultaneous inflation in some sectors and deflation in others

Skewflation describes a scenario where prices rise persistently in specific sectors (like food or energy) while remaining stable or even falling in others. This makes monetary policy challenging, as raising interest rates to curb sector-specific inflation might hurt the broader, non-inflating economy.

Topic Macroeconomics - Inflation
Exam Relevance UPSC Prelims, SSC CGL
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