Proceedings of Global Business Research Conference
7-8 November 2013, Hotel Himalaya, Kathmandu, Nepal, ISBN: 978-1-922069-35-1
Recent Trands in Inflation after New Reforms in India
Yadav Bharati Jagannath.
The Indian economy had achieved substaintial economic progress in many
fronts since the implementation of the economic reforms in 1991. But a
major problem faced during the post reforms period has been the higher
levels of inflation. During the half of the 1990s, the economy experienced a
spurt in inflation. The annual average inflation rate during the period was
10.6 percent. 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 paper
examines the recent trends of inflation in India.
JEL Codes: E31, E58, E63.
1. Introduction.
In a developing economy, prices usually display an upwards trend. But if prices keep
rising persitently, they cause great hardship to the people. Over the past several
years rising prices have become a chronic malady in India's national life. They have
given rise to widespread distress, especially among people who are already living at
the subsistence level and also among those in the fixed income group.
2. Literature Review
Shrinivasan, Mahambare and Ramchandran (2006) estimated an augmented philips
curve to examin the effect of supply shocks on inflation in India. Anuradha Patnaik
(2010) The spate of persistant inflationary presssure experienced in the post
libralisation era in India throws light on the fact that the causes in India have
undergone tectonic changes.
3. The Methodology.
In order to test my hypothesis I have presented the theoretical and empirical study. I
have used the old series and new series of wholesale price Index (WPI) which is the
main measures of the rate of inflation in India and is used for policy purposes. The
study coverd period since the implementation of the economics reforms in 1991.
4. The Findings
Inflation figures in India have been progressively hardening. The year on year
increase in WPI. In March 2011 it was 9 percent while food inflation was 9.5 percent.
There are various factors that contribute to this rise in prices.
___________
Dr. Yadav Bharati Jagannath.R.S.S., Mahatma Phule Mahavidyalaya, Pimpri, Pune-411017, India,
Email: Shedgebharati523@gmail.com
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Proceedings of Global Business Research Conference
7-8 November 2013, Hotel Himalaya, Kathmandu, Nepal, ISBN: 978-1-922069-35-1
5. Summary and conclusions.
The Trends in inflation during the post reform period showed that the rate of inflation
was very high. There had been a spurt in inflation due to an increase in the prices of
food items, primary articles and the Manufactured food products.
References
Government of India, Economic Survey (Anuual) issues from 1991-92 to 2011-12,
New Delhi, Ministry of finance.
Jalan B. (1992) The Indian Economy. Problems and prospects. New Delhi. Viking.
Rangarajan, C. (1999). Development, inflation and Monetary Policy. In I.J. Ahluwalia
and I.M.D. Little (Eds.), India's Economic Reforms and Development. New
Delhi. Oxford University Press.
Reserve Bank of India (2007).RBI Bulletin, April, Bombay, RBI.
Reserve Bank of India (2008). Anuual Report 2007-08, Bombay, RBI.
Reserve Bank of India (2009). Annual Report 2008-09, Bombay, RBI.
Shrinivasan T.N. (Ed.) (2000) Eight Lectures on India's Economic Reform's. Oxford :
Oxford University Press.
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