A STUDY ON INFLATION TRENDS IN INDIA AND ITS CAUSES

Abstract: The problem of inflation is also a significant economic phenomenon that has effects on individuals as well as the economy in general. It decreases the buying power of money and brings in uncertainty in financial decisions. Governments turn to such instruments as fiscal policy to regulate inflation by cutting the amount of money spent by people or raising taxes. Demand-pull inflation is a situation whereby there is greater demand in the goods and services than the supply that is available hence causing the prices to skyrocket. The research is premised on the secondary data retrieved through journals, websites, and reports. It seeks to learn the trends of inflation in India, its key causes, and the effects that it has on the stability of the economy. The research is useful in understanding further about inflation and how it can be used in financial decision-making.

Keywords: Inflation, Economic Uncertainty, Consumer Price Index (CPI), Wholesale Price Index