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What is Inflation

Inflation

About Inflation

What is Inflation

Inflation can be defined as a persistent rise in the general price of goods and services of common or daily use — such as clothing, food, fuel, transport, etc — which results in an increase in the cost of living.
 
Inflation is the measure of change in average price of services and commodities, done at regular intervals. It indicates a decrease in the purchasing power of a unit of a nation’s currency as the products and services get more expensive. Basically, inflation is the difference between aggregate demand and aggregate supply of goods and services. When aggregate demand exceeds the supply
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Latest Updates on Inflation

Lingering geopolitical tensions may hit loan portfolios: RBI report

RBI warned that the West Asia conflict, rising energy prices and monsoon risks could weigh on India's growth and inflation outlook in the short term

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Updated On : 29 May 2026 | 11:11 PM IST

Food, personal care products may get costlier as input costs rise: Report

The report said companies have already increased prices by around 3 per cent to 7 per cent over the past one to two months after their raw material basket costs climbed nearly 10 per cent on average

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Updated On : 29 May 2026 | 7:48 AM IST

Wealth erosion likely as India's consumer economy heads into perfect storm

With household budgets under strain from rising prices, coupled with slow income growth due to a decelerating economy, the consumer goods sector is bracing for a demand slowdown

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Updated On : 26 May 2026 | 11:16 PM IST

Why high inflation bodes well for FMCG companies: Harini Dedhia decodes

Having witnessed a prolonged period of benign inflation in the last decade, we should have expected FMCG companies to witness great volume growth, if not value. However, the opposite has been true

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Updated On : 26 May 2026 | 1:45 PM IST

RBI not in favour of rate hikes to defend rupee, prioritises inflation

India's rupee has fallen nearly 6 per cent since the Iran war began late in February and slumped to a record low of nearly 96.96 per dollar on Thursday

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Updated On : 22 May 2026 | 11:16 AM IST

Crude prices could influence growth, inflation: EAC-PM chief S Mahendra Dev

EAC-PM Chairman S Mahendra Dev said higher crude prices and supply disruptions from the West Asia conflict could weigh on India's growth and inflation

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Updated On : 21 May 2026 | 10:45 PM IST

India's shrinking bond yield cushion: Why the US-India spread matters

India's 10-year bond yield premium over the US has narrowed to around 250 basis points, well below its decade average. But does that mean RBI will cut rates? Let's find out

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Updated On : 21 May 2026 | 12:48 PM IST

Best of BS Opinion: Govt must allow greater price adjustments

From rising oil pressures and coal gasification to urban housing reform and RBI policy, today's BS Opinion explores the economic and structural challenges shaping India's future

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Updated On : 21 May 2026 | 6:15 AM IST

Is India's inflation targeting too rigid for this oil-shock climate?

A credible framework requires credible measures of price expectations

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Updated On : 20 May 2026 | 11:24 PM IST

IMF backs targeted relief over broad subsidies amid oil price surge

The multilateral institution has urged governments to avoid broad-based subsidies and instead adopt targeted fiscal measures to manage inflation and protect vulnerable households

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Updated On : 20 May 2026 | 10:59 PM IST

RBI likely to hold repo rate at 5.25% through FY27: India Ratings

India Ratings projects GDP growth at 6.7% and inflation at 4.4%, warning that higher crude prices and West Asia tensions may pressure growth and trade deficit

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Updated On : 19 May 2026 | 10:50 PM IST

Nobel-winning economist Edmund Phelps reshaped modern thinking on inflation

The Nobel laureate's work on inflation expectations and unemployment transformed economic policymaking and influenced central banks around the world

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Updated On : 19 May 2026 | 10:18 PM IST

'Fuel price hike raises inflation woes; Rupee eyes 96.80 on higher crude'

Petrol and diesel prices were raised by ₹3 per litre as Brent crude stayed above $105 per barrel. Here's how rising fuel prices could impact inflation and the rupee

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Updated On : 15 May 2026 | 2:32 PM IST

'Further fuel price hikes may intensify FPI selling in Indian markets'

Elevated crude oil prices further worsen India's inflation-growth trade-off by putting pressure on the rupee, widening the current account deficit, & limiting the scope for aggressive monetary easing

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Updated On : 15 May 2026 | 2:31 PM IST

MPC to look through West Asia shock if it's transitory: RBI Governor

Coordination with fiscal policy becomes critical amid 'supply shock as bad as it is', says Malhotra

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Updated On : 13 May 2026 | 10:53 PM IST

US consumer inflation rises 3.8% in April, highest since May 2023

In the 12 months through April, the CPI advanced 3.8 per cent . That was the biggest year-on-year increase since May 2023 and followed a 3.3 per cent rise in March

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Updated On : 12 May 2026 | 9:36 PM IST

Beyond appeals: Prices are the best way to change consumer behaviour

If the government allows prices to adjust swiftly in response to the changed supply situation, then people will automatically follow suit

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Updated On : 11 May 2026 | 10:41 PM IST

China's April producer inflation hits 45-month high on energy price shock

The producer price index (PPI) increased 2.8 per cent from a year earlier, National Bureau of Statistics (NBS) data showed

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Updated On : 11 May 2026 | 8:04 AM IST

FMCG firms bracing for another round of price increases amid inflation

Executives of FMCG makers, which have already gone for recent price hikes of around 3 to 5%, in latest earnings calls have indicated either ongoing price increases or readiness to raise prices further

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Updated On : 10 May 2026 | 10:52 PM IST

India's April consumer inflation likely rose to 3.8% on higher fuel costs

Indian companies raised prices of LPG, widely used as a cooking fuel in households, in March after the West Asia conflict disrupted energy supplies, an effect economists said likely carried into April

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Updated On : 08 May 2026 | 1:15 PM IST