Which of the following scenarios best describes 'Skewflation'?

Correct Answer: Uneven price rise in select items while others remain stable

Subject: economics

• Overall price levels of all goods fall simultaneously
• Uneven price rise in select items while others remain stable
• Inflation accompanied by high unemployment
• Extreme inflation over 500%

Explanation: • <b>Key Fact</b> Skewflation means an uneven price rise in select items while others are stable. • <b>Supporting Detail</b> Example: A seasonal hike in onion prices alone. • <b>Related Concept</b> Stagflation is inflation with unemployment (Option C). • <b>Why wrong options are wrong</b> Option A is Deflation. Option D is Hyperinflation. • <b>Exam Trick</b> "Skewed" means biased or uneven. Therefore, uneven price rise = Skewflation. • <b>Additional Info</b> It can temporarily distort the Headline Inflation figure.

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