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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

Minutes of June MPC meet: Members wary of generalisation of inflation

RBI Monetary Policy Committee members highlighted risks of inflation becoming broad-based and stressed uncertainty around growth and prices due to the West Asia conflict

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Updated On : 19 Jun 2026 | 11:41 PM IST

P&G India sees rural consumption growth soften amid inflation pressures

The FMCG major said rural demand continues to outpace urban consumption, but inflation, delayed monsoon and global uncertainties are beginning to weigh on growth

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Updated On : 16 Jun 2026 | 9:00 PM IST

Medical costs up, ICICI Lombard makes a case for higher health cover

The insurer said customers should consider higher sums insured to keep pace with rising treatment costs, while stressing that the final decision rests with policyholders

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Updated On : 15 Jun 2026 | 11:21 PM IST

India's wholesale inflation rises to 9.68% in May on high fuel, food prices

Rising energy costs linked to the West Asia conflict drove fuel inflation to 30.33 per cent, while food inflation climbed to 4.49 per cent in May

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Updated On : 15 Jun 2026 | 12:39 PM IST

Inflation worries keep markets wary even after US-Iran peace deal

A drop in oil prices may ease inflation and give central banks more flexibility, but key issues, including Iran's nuclear program, sanctions relief and future operations of Hormuz remain unsettled

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Updated On : 15 Jun 2026 | 12:03 PM IST

US-Iran peace deal may help boost India's exports, stabilise rupee

Experts said the announcement, if implemented successfully, would reduce pressure on India's import bill, ease inflationary covers and create a more conducive environment for trade

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Updated On : 15 Jun 2026 | 10:51 AM IST

India's long-term consumption story intact despite challenges: KKR

The investment firm says rising incomes, premiumisation and financial deepening continue to support India's long-term growth outlook despite energy and AI-related pressures

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Updated On : 10 Jun 2026 | 7:31 PM IST

Inflation likely rose to 4% in May amid rising food, fuel costs: Poll

RBI Governor Sanjay Malhotra said underlying inflation pressures remained benign, although second-round effects warranted vigilance

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Updated On : 08 Jun 2026 | 1:34 PM IST

Indian companies hike prices, shrink packs as Iran war squeezes margins

The US-Israeli war on Iran has disrupted trade routes and lifted input costs ​globally, hitting import-reliant economies like India harder, where a weaker rupee is adding to inflation

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Updated On : 08 Jun 2026 | 7:38 AM IST

EMs in the oil shock: Policymakers are going into an examination hall

The 2026 oil shock is testing emerging economies, with fuel pricing, exchange-rate flexibility and inflation control set to determine growth outcomes

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Updated On : 07 Jun 2026 | 10:23 PM IST

RBI policy: 'Inflation target sacrosanct for us, not in abeyance at all'

RBI Governor Sanjay Malhotra said the 4% inflation target remains sacrosanct, while stressing a data-driven approach amid supply-side risks and uncertainty

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Updated On : 05 Jun 2026 | 11:28 PM IST

Indian households expect inflation to spike as consumer confidence wanes

RBI surveys show Indian households expect inflation to jump amid US-Iran war tensions and weak monsoon forecasts, driving a steep decline in consumer confidence

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Updated On : 05 Jun 2026 | 8:34 PM IST

Asia faces rate-hike pressure as energy shock, AI boom fuel inflation

Asia is particularly vulnerable because it sits at the center of global manufacturing and technology supply chains while remaining heavily reliant on imported energy

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Updated On : 03 Jun 2026 | 8:05 AM IST

Best of BS Opinion: RBI faces twin inflation risks as uncertainty swirls

Today's Opinion highlights the RBI's policy choices, soaring IPL franchise valuations, fiscal challenges, climate targets and a timely examination of contemporary China

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Updated On : 03 Jun 2026 | 6:15 AM IST

RBI monetary policy: The critical need to attract foreign savings

Rising fuel prices and tighter global conditions are reshaping India's funding landscape, increasing reliance on bank credit as foreign and domestic savings slow

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Updated On : 02 Jun 2026 | 11:00 PM IST

Iran's inflation at 77.2% in May, highest level since World War II

A report Monday by Iran's Central Bank represents the first official acknowledgment of what Iranians shopping, paying for a taxi or visiting a medical clinic already know

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Updated On : 02 Jun 2026 | 10:47 PM IST

Fuel price hikes could add up to 48 bps to inflation, warns Crisil

Crisil said cumulative increases in petrol and diesel prices could approach Rs 10 per litre, raising transport costs and exerting upward pressure on both food and core inflation

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Updated On : 02 Jun 2026 | 9:55 PM IST

RBI may maintain status quo in June, hike rates twice in FY27: Economists

Most of the respondents expect the central bank to resume policy tightening later in FY27 amid mounting inflation risks

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Updated On : 02 Jun 2026 | 4:37 PM IST

Iran war puts RBI in razor-edge policy bind over inflation, growth, rupee

The rupee has tumbled ​to record lows since the Iran war broke out at the end of February

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Updated On : 02 Jun 2026 | 2:38 PM IST

Global investors still under-allocated to emerging mkts: Candace Browning

BofA's Candace Browning sees inflation, central bank policy, AI, and India's market outlook as the key forces shaping global investments

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Updated On : 31 May 2026 | 11:08 PM IST