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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

ICICI Pru AMC's Rajat Chandak sees value in software & 2 more sectors

From a broader perspective, we continue to see value in areas like software where valuations remain reasonable relative to long-term growth potential, says Rajat Chandak.

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Updated On : 07 Aug 2026 | 9:37 AM IST

The story now is not 'lower for longer', but the calm before higher rates

Strong growth, above-target inflation projections and near-zero real interest rates suggest the RBI's dovish stance may not last, raising the prospect of higher rates ahead

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Updated On : 05 Aug 2026 | 11:09 PM IST

'Our endeavour is to bring inflation in line with target over medium term'

RBI Governor Sanjay Malhotra said policy will remain guided by headline inflation and evolving growth dynamics, while reaffirming the central bank's data-dependent approach

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Updated On : 05 Aug 2026 | 11:01 PM IST

Policy prospects: Inflation projections demand monetary tightening

The RBI's decision to hold rates reflects easing inflation risks for now, but rising price pressures could warrant policy tightening in the coming months

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Updated On : 05 Aug 2026 | 10:09 PM IST

RBI policy a cautiously constructive hold; focus on liquidity management

The RBI is more likely to use temporary liquidity absorption tools than tighten its policy stance or rates ahead, while system liquidity should improve as government spending accelerates.

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Updated On : 05 Aug 2026 | 2:43 PM IST

RBI's balanced pause raises bar for future rate hikes: Amar Ambani, YES Sec

Any further policy tightening is likely to remain contingent on a sustained rise in energy prices or evidence of broader, demand-driven inflationary pressures.

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Updated On : 05 Aug 2026 | 1:24 PM IST

Improved balance of risk supports RBI to remain on wait & watch mode

The balance of risk improved as downside risk to growth declined along with upside risk to inflation, according to Gaura Sengupta, chief economist at IDFC First Bank

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Updated On : 05 Aug 2026 | 1:03 PM IST

RBI's FY27 inflation projection cools bond yields; what's the road ahead?

Despite markets continuing to price in policy rate hikes over the next 6-12 months, the softer-than-expected tone of the policy has supported bond markets, said Deepak Agrawal, Kotak Mahindra AMC.

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Updated On : 05 Aug 2026 | 12:56 PM IST

Rise in wholesale inflation driven by global commodity, energy costs: Govt

Minister of State for Finance Pankaj Chaudhary said in the Lok Sabha that the government has been actively undertaking a series of measures to control inflation

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Updated On : 03 Aug 2026 | 3:03 PM IST

BS poll: 'Cautious' MPC may stick to status quo, retain neutral stance

Most economists expect stance to remain 'neutral'

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Updated On : 02 Aug 2026 | 11:24 PM IST

Inflation, AI-led job uncertainty weigh on some consumers: United Spirits

The liquor maker said premium demand remains healthy despite inflationary pressures and AI-driven employment uncertainty affecting sentiment in some consumer segments

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Updated On : 23 Jul 2026 | 7:43 PM IST

War could cut global growth to 1.3%: World Bank Chief Economist Gill

The World Bank warned that a prolonged US-Iran conflict could slow global growth to 1.3% in 2026, while fuelling inflation, higher interest rates and debt pressures

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Updated On : 22 Jul 2026 | 10:47 PM IST

Rural income gains hit two-year low, informal borrowing rises: Nabard

Nabard's latest survey shows that rural income growth has slowed to a two-year low. The findings come as rural inflation reached 5% in June, compared with 4% in urban area

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Updated On : 22 Jul 2026 | 1:38 PM IST

Will continue to prioritise inflation, says RBI governor Sanjay Malhotra

"We have to watch out for monsoon… how it progress because a significant population depends on agriculture," he said

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Updated On : 17 Jul 2026 | 10:37 PM IST

West Asia tensions, weak monsoon key risks for Indian economy: RBI Governor

RBI Governor Sanjay Malhotra said inflation risks remain elevated due to West Asia tensions, rising oil prices and the possibility of a weak monsoon, even as supply-side pressures dominate

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Updated On : 17 Jul 2026 | 11:00 AM IST

I-T department raises Cost Inflation Index for current fiscal to 384

The CBDT has raised the Cost Inflation Index to 384 for FY27, helping taxpayers compute inflation-adjusted long-term capital gains on eligible assets

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Updated On : 16 Jul 2026 | 7:47 PM IST

CBDT raises Cost Inflation Index to 384 for financial year 2026-27

The Cost Inflation Index for FY27 will apply from April 1, 2026, though indexation is now available only in limited cases involving certain land and building sales

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Updated On : 16 Jul 2026 | 1:33 PM IST

CBDT notifies Cost Inflation Index for FY2026-27 at 384. What it means

A higher index means the inflation-adjusted cost of acquiring an asset will be higher than it was in FY26

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Updated On : 16 Jul 2026 | 11:42 AM IST

Fed's Lisa Cook says ready to act if inflation does not cool soon

Federal Reserve Governor Lisa Cook said inflation risks now outweigh labour market concerns and signalled she is prepared to act if disinflation does not resume soon

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Updated On : 16 Jul 2026 | 12:14 AM IST

Old health cover may leave you underinsured as medical costs rise

Review the sum insured at every renewal, upgrade while healthy, and use a super top-up to raise cover affordably

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Updated On : 15 Jul 2026 | 3:25 PM IST