What is the current inflation rate in India and what effects of inflation in India?

Answer 1

Current inflation in India is a bit volatile. However, given different estimated values of commonly understood inflation in India, the Wholesale Price Index for all commodities is 156.8 for the month of October 2011 with a base of 2004-05=100. Inflation is the rate of change over any reference period. So, If we compare the figure with October 2010, the inflation is around 9.5 percent. However, wholesale price index (WPI) is not the only indicator to understand inflation. There are other indicators such as Consumer Price Index (CPI). Even within WPI and CPI there are also divisions for different groups of population. In India, for such subgroups inflation is measured by finding the rate of change in such indices for groups like agricultural labourers, urban non-manual employees, Industrial workers and so on. For a detailed description on inflation in Indian context, one may refer to the link <http://lokkatha.com/150/index.php/economics/55-inflation-a-price-rise-in-essential-commodities-a-consumers-perspective> Inflation & Price Rise in Essential Commodities: A Consumer's Perspective