The Indian Economy Since 1991, 2nd Edition

12

Inflation in India

S. Narayanan

12.1 Introduction

The Indian economy had achieved substantial economic progress in many fronts since the implementation of the economic reforms in 1991. But a major problem faced during the post-reform period has been the higher levels of inflation. During the first half of the 1990s, the economy experienced a spurt in inflation. The annual average inflation rate during the period was 10.6 per cent. However the inflation rate fell to 5.10 per cent during the second half of the 1990s. There was a marginal fall in the inflation growth during the first half of the first decade of the 21st century. But the inflation rate again increased during the end of the first decade. In this context, the chapter examines the ...