What Is the Impact of Inflation on the Indian Economy?

What Are the Effects of Inflation on the Indian Economy?

How to Calculate the Inflation Rate?

What Are the Causes of Inflation in India?

FAQs on the Impact of Inflation on the Indian Economy

How does the government overcome inflation?

Governments manage inflation by monitoring the supply of money through financial policies. To do this, they change the Statutory Liquidity Ratio (SLR) and Current Reserve Ratio (CRR), as well as bank rates, whenever necessary.

What is the difference between inflation and stagflation?

Inflation is the general increase in the costs of products and services within an economy over time. In contrast, stagflation is an economic phenomenon that exhibits slow economic growth, huge inflation, and enlarged unemployment. Even though inflation can benefit the economy sometimes, stagflation is not.

What has been the rate of inflation in India in the last ten years?

The inflation rate in India was 6.04% on average from the year 2012 up to 2022. It reached its peak in November 2013 at 12.17%. On the other hand, it recorded the lowest in June 2017 at only 1.54%.

What are the types of inflation?


In general, inflation is classified into four types:

  • Hyperinflation
  • Galloping
  • Walking
  • Creeping