What is Inflation?

Inflation is the increase in prices of products and services over time. If the price of an item increases, one can buy lesser item for the same money. Ever heard elderly people saying “in our times things were so cheap”, needless to say that incomes were different too in those times.

In India there are indices for the measurement of inflation such as Consumer Price Index and Wholesale Price Index.

The inflation rate in India was at 7.55 percent in August of 2012. Historically, from 1969 until 2012, India Inflation Rate averaged 7.75 Percent. The highest inflation was recorded at 34.68% in September1974.