HISTORY OF INFLATION IN INDIA
HISTORY OF INFLATION IN INDIA
The inflation rate in India was recorded at 6.46 percent in September of 2013. Inflation Rate in India is reported by the Ministry of Commerce and Industry, India. India Inflation Rate averaged 7.72 Percent from 1969 until 2013, reaching an all time high of 34.68 Percent in September of 1974 and a record low of -11.31 Percent in May of 1976.
n September, India's headline inflation rate based on monthly WPI rose to 6.5 percent from 6.1 percent in August, hitting its highest level since February of 2013. The speed up is broadly due to higher prices for food.
The index for food prices rose by 18 percent due to higher prices of vegetables (soaring 89 percent), rice (19 percent) and fruits (14 percent).
Energy costs were up 10 percent due to higher prices of high speed diesel (20 percent), liquefied petroleum gas and oil (both up by 9 percent). Manufactured goods prices rose 2.0 percent.
The build up inflation rate in the financial year so far was 5.64 percent compared to a build up rate of 4.84 percent in the corresponding period of the previous year.
n 2010-11, inflation was at 9.6% (official) which makes it the highest since 1994-95, when it was 12.6%.
The highest inflation in 16 years is still only a partial indicator, since we use Wholesale Product Prices to calculate inflation, rather than the more acceptable consumer prices which would have included Rent and Wages. (Our CPI indexes suck big time, so we don’t use them. A new “Urban CPI” is being released but it is such utter crap that I won’t even talk about it)
In the early days of the Indian republic, other than 1956, inflation stayed at a controlled level below 10%. No one could even set their own prices, since everything was government controlled. At some level integration issues would have given rise to price validity problems as well.
In the 60s, we faced spiky inflation as wars hit our economy – the Chinese war in 62, and then the war with Pakistan in
The inflation rate in India was recorded at 6.46 percent in September of 2013. Inflation Rate in India is reported by the Ministry of Commerce and Industry, India. India Inflation Rate averaged 7.72 Percent from 1969 until 2013, reaching an all time high of 34.68 Percent in September of 1974 and a record low of -11.31 Percent in May of 1976.
n September, India's headline inflation rate based on monthly WPI rose to 6.5 percent from 6.1 percent in August, hitting its highest level since February of 2013. The speed up is broadly due to higher prices for food.
The index for food prices rose by 18 percent due to higher prices of vegetables (soaring 89 percent), rice (19 percent) and fruits (14 percent).
Energy costs were up 10 percent due to higher prices of high speed diesel (20 percent), liquefied petroleum gas and oil (both up by 9 percent). Manufactured goods prices rose 2.0 percent.
The build up inflation rate in the financial year so far was 5.64 percent compared to a build up rate of 4.84 percent in the corresponding period of the previous year.
n 2010-11, inflation was at 9.6% (official) which makes it the highest since 1994-95, when it was 12.6%.
The highest inflation in 16 years is still only a partial indicator, since we use Wholesale Product Prices to calculate inflation, rather than the more acceptable consumer prices which would have included Rent and Wages. (Our CPI indexes suck big time, so we don’t use them. A new “Urban CPI” is being released but it is such utter crap that I won’t even talk about it)
In the early days of the Indian republic, other than 1956, inflation stayed at a controlled level below 10%. No one could even set their own prices, since everything was government controlled. At some level integration issues would have given rise to price validity problems as well.
In the 60s, we faced spiky inflation as wars hit our economy – the Chinese war in 62, and then the war with Pakistan in