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It occurs when prices are rising slowly When the rate of inflation is less than 10 per cent annually, or it is a single digit int1ation rate, it is considered to be a moderate inflation in the present the economy.
Prof. Samuelson observes that moderate inflation is typical today in most industrialized countries. The following are the major characteristics of moderate inflation:
i. There is a single digit inflation rate (less than 10 per cent) annually.
ii. It does not disrupt the economic balance.
iii. It is regarded as stable Inflation in which the relative prices do not get far out of line...
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