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Price trends in India

During the 1950’s, the average decadal rate of inflation was very low at 1.7%.
During the 1960’s, the average decadal rate of inflation went up to 6.4%. It was due to -
  • Chinese war in 1962
  • Pakistan war in 1965
  • Famine conditions in 1965-67
The maximum rate of inflation at 14 % was recorded in 1966-67.
During the 1970’s, the average decadal rate of inflation was 9%. Due to undue hike in oil prices in this decade, once in 1972-73 and again in 1979-81, it led to an overall increase in prices. During the 1980’s, the decadal average inflation was 8%. The average inflation rate was around 10% during the 1st half of nineties. The inflation rate was more that 12% during 1990 and 1991.The next three years saw a decline in the inflation rates at around 10%. The growth in prices, both, at the wholesale level and retail level, has been around 5% p.a. during 1996-2001.
  • The average inflation during 2010 April to December was 9.4% which was the highest recorded average inflation in last ten years.
  • Delayed monsoons, hardening of international prices for crude oil, minerals and related products, shortfall in domestic production vis- a- vis domestic demand, led to higher inflation during 2000-10.
  • There has been a significant variation in inflation rates in terms of WPI and Consumer Price Indices (CPI’s). Consumer Price Index combined for urban and rural was 7.65%. CPI (urban) was 7.38% and CPI rural was 8.25% in January 2012.

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