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| Year | Inflation rate compared to previous year, in % |
|---|---|
| 2028 | 4.00 |
| 2027 | 4.00 |
| 2026 | 4.09 |
| 2025 | 4.09 |
| 2024 | 4.55 |
| 2023 | 5.46 |
| 2022 | 6.66 |
| 2021 | 5.51 |
| 2020 | 6.18 |
| 2019 | 4.76 |
| 2018 | 3.43 |
| 2017 | 3.60 |
| 2016 | 4.50 |
| 2015 | 4.90 |
| 2014 | 5.80 |
| 2013 | 9.40 |
| 2012 | 10.00 |
| 2011 | 9.50 |
| 2010 | 10.53 |
| 2009 | 12.31 |
| 2008 | 9.09 |
| 2007 | 6.20 |
| 2006 | 6.70 |
| 2005 | 4.40 |
| 2004 | 3.82 |
| 2003 | 3.86 |
| 2002 | 3.98 |
| 2001 | 4.31 |
| 2000 | 3.83 |
| 1999 | 5.70 |
| 1998 | 13.13 |
| 1997 | 6.84 |
| 1996 | 9.43 |
| 1995 | 9.96 |
| 1994 | 10.28 |
| 1993 | 7.28 |
| 1992 | 9.86 |
| 1991 | 13.48 |
| 1990 | 11.20 |
| 1989 | 4.57 |
| 1988 | 7.21 |
| 1987 | 9.06 |
- Source: IMF - Inflation rate in India
- Region: India
- Time period: 1987 to 2023
- Published: Oct 2023
Data Analysis and Insights
Highest Inflation Rate
India experienced its highest inflation rate of 13.48% in 1991, showcasing a significant economic challenge during that period.Lowest Inflation Rate
The lowest inflation rate recorded was 3.43% in 2018, indicating a period of relative price stability.Decade of High Inflation: 1990s
The 1990s witnessed consistently high inflation rates, with an average rate exceeding 9%, highlighting a decade of economic volatility.Inflation Rate Reduction in 2000s
A significant reduction in inflation rates was observed in the early 2000s, with 2001 marking a rate of 4.31%, indicating effective monetary policies.Recent Decade Trend
The most recent decade shows a downward trend in inflation rates, with rates decreasing from 12.31% in 2009 to 4.00% by 2027, demonstrating improved economic stability.Impact of 2008 Global Financial Crisis
The year 2009 saw an inflation rate of 12.31%, likely influenced by the 2008 global financial crisis, illustrating its impact on India's economy.Early 2000s Stability
Between 2002 and 2004, inflation rates were notably stable, hovering around 3.82% to 3.98%, reflecting a period of economic steadiness.Transition from High to Moderate Inflation
A transition from high to moderate inflation is evident when comparing the early 1990s to the late 2000s, with rates moving from 13.48% in 1991 to under 5% by 2004, indicating successful inflation control measures.Inflation Peaks and Troughs
India's inflation rates have seen peaks and troughs over the years, with significant fluctuations from 13.48% in 1991 to as low as 3.43% in 2018, showcasing the dynamic nature of its economy.Frequently Asked Questions
What was the highest inflation rate India has experienced?
India experienced its highest inflation rate of 13.48% in 1991.
What was the lowest inflation rate recorded for India?
The lowest inflation rate in India was 3.43% in 2018.
Terms and Definitions
Inflation is the rate at which the general level of prices for goods and services is rising. It results in a decrease of purchasing power each unit of currency can buy. When the inflation rate becomes too high, the economy could face instability.
The rate of inflation refers to the percentage change in the price level from one period to the next, usually measured on an annual basis. It is usually calculated by taking the change in the Consumer Price Index (CPI) or Wholesale Price Index (WPI) over a certain period.
The Consumer Price Index (CPI) is a calculation that allows economists to estimate average prices of a basket of representative goods and services purchased by households over time. It's often used as a measure of inflation.
The Wholesale Price Index (WPI) is an index that measures and tracks the changes in the price of goods in the stages before the retail level. WPI is used as a measure of inflation by some nations.
Purchasing power is the value of a currency expressed in terms of the amount of goods or services that one unit of money can buy. Inflation erodes purchasing power - as prices increase, the same unit of currency buys less.
Monetary policy is the macroeconomic policy laid down by the central bank. It involves the management of money supply and interest rates, aimed at achieving macroeconomic objectives like inflation, consumption, growth, and liquidity.
Demand-Pull Inflation is a term used to describe inflation that results from an increase in aggregate demand, categorized by the four sections of the macroeconomy: households, businesses, governments, and foreign buyers. It often occurs in a growing economy.
Cost-Push Inflation describes a phenomenon in which the general price levels rise due to increases in the cost of wages and raw materials. High inflation can occur when such increases in production costs are passed onto consumers in the form of higher prices for the final product.
Hyperinflation is an extremely high and typically accelerating inflation. It erodes the real value of the local currency, as the prices of all goods increase drastically. It creates a situation where the currency becomes worthless and a transition to a more stable currency is necessary.
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