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Inflation

About Inflation

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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 of goods at current prices, there is a rise in the price level.
 
A certain level of inflation is required in the economy to ensure that expenditure is promoted and money hoarding through savings is discouraged.
 
How is inflation measured?
 
In India, there are two main sets of inflation indices to measure changes in price levels — Consumer Price Index (CPI) and Wholesale Price Index (WPI). These indices measure changes at the retail and wholesale price levels, respectively. CPI tracks any shift in retail prices of essential and daily goods and services consumed by households across the country. In short, it captures changes in price level at the consumer level.
 
WPI, on the other hand, is the average change in the price of commodities at the wholesale level. It considers the price of goods traded among corporations, not goods purchased by consumers. The aim of WPI is to monitor price drifts that reflect demand and supply in manufacturing, industry and construction. 
 

Latest Updates on Inflation

Telangana tops India's inflation table for eighth consecutive month

Telangana recorded the highest combined inflation among states in August at 6.27 per cent, while rural inflation exceeded urban inflation across most leading states.

Updated On: 15 Sep 2026 | 11:57 PM IST

RBI may hike rates by 25 bps each in Oct & Dec as inflation may cross 6%

Economists say the rate hike cycle could be shallow, with 50-75 bps hike in the current cycle

Updated On: 15 Sep 2026 | 10:29 PM IST

Buzzing stocks: RIL, SBI Life, ICICI Lombard, Shree Cement hit 52-wk lows

ACC, Ambuja Cements, India Cements and Shree Cement from the cement sector hit their respective 52-week lows.

Updated On: 15 Sep 2026 | 1:14 PM IST

Retail inflation rises to 4.82% in August as food inflation climbs to 5.95%

Food inflation rose to 5.95 per cent in August from 5.52 per cent in July, while rural and urban headline inflation stood at 5.23 per cent and 4.31 per cent, respectively

Updated On: 14 Sep 2026 | 4:09 PM IST

Food inflation threatens festive cheer as kharif, El Nino risks mount

Food inflation could remain elevated through the festive season as uneven monsoon rains, kharif crop uncertainties, El Nino risks and higher global food prices put pressure on household budgets

Updated On: 10 Sep 2026 | 9:55 PM IST

Cost of home-cooked meals moderately higher in August: Crisil report

The cost of a vegetarian meal increased 1 per cent year-on-year and month-on-month to ₹29.5 per thali, the monthly report by the research arm of domestic rating agency Crisil said

Updated On: 08 Sep 2026 | 3:39 PM IST

From crises to inflation: What RBI Governors' speeches tell us about policy

From Subbarao and Rajan's crisis-era outreach to Patel's reticence and Das' Governor's Statements, the RBI's communication has evolved alongside India's economic challenges

Updated On: 01 Sep 2026 | 8:18 PM IST

US inflation data boosts dollar as Fed hike bets rise ahead of Jackson Hole

The dollar index, which measures the greenback against a basket of currencies, rose 0.21% to 99.12 and was on pace for its biggest daily gain since August 6, with the euro down 0.16% at $1.1655.

Updated On: 26 Aug 2026 | 11:45 PM IST

Datanomics: Manufacturers beat input price changes despite volatility

Disaggregated figures for the top five categories showed month-on-month volatility.

Updated On: 17 Aug 2026 | 10:57 PM IST

Wholesale inflation eases marginally to 9.78% in July as fuel prices cool

Fuel and power inflation slowed sharply in July, offsetting higher inflation in primary articles and manufactured products, while core WPI rose to 8.2 per cent

Updated On: 14 Aug 2026 | 7:12 PM IST

Wholesale inflation eases to 9.78% in July as fuel price rise cools

WPI Food Index inflation rose to 6.65% in July from 6.14% in June, while fuel and power inflation eased to 20.05% from 27.41%

Updated On: 14 Aug 2026 | 12:17 PM IST

India's inflation rises to 4.45%, but unlikely to shift RBI rate outlook

India's retail inflation rose for a second straight month above the RBI's 4% target in July, but remained within the central bank's 2-6% tolerance band.

Updated On: 12 Aug 2026 | 7:29 PM IST

FMCG to automobiles: India Inc counting the cost of West Asia conflict

While several firms have responded with calibrated price increases to protect margins, many signalled that further price escalations could follow

Updated On: 11 Aug 2026 | 7:56 AM IST

China's producer inflation eases to 3-month low in July, CPI slows

China's ​leaders, confronting a two-speed ​economy of strong factory output and exports but weak ​domestic demand, have pledged to bolster growth by accelerating fiscal spending

Updated On: 09 Aug 2026 | 8:50 AM IST

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.

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

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

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

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.

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.

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