TRENDS OF INFLATION IN INDIA IN RELATION TO WORLD ECONOMY
INDIA INFLATION RATE
The inflation rate in India was recorded at 4.70 percent in May of 2013. Inflation Rate in India is reported by the Ministry of Commerce and Industry. Historically, from 1969 until 2013, India Inflation Rate averaged 7.73 Percent reaching an all-time high of 34.68 Percent in September of 1974 and a record low of -11.31 Percent in May of 1976. In India, the wholesale price index (WPI) is the main measure of inflation. The WPI measures the price of a representative basket of wholesale goods. In India, wholesale price index is divided into three groups: Primary Articles (20.1 percent of total weight), Fuel and Power (14.9 percent) and Manufactured Products (65 percent). Food Articles from the Primary Articles Group account for 14.3 percent of the total weight. The most important components of the Manufactured Products Group are Chemicals and Chemical products (12 percent of the total weight); Basic Metals, Alloys and Metal Products (10.8 percent); Machinery and Machine Tools (8.9 percent); Textiles (7.3 percent) and Transport, Equipment and Parts (5.2 percent).
INFLATION: GDP DEFLATOR (ANNUAL %) IN WORLD
The Inflation, GDP deflator (annual %) in World was last reported at 5.47 in 2011, according to a World Bank report published in 2012. Inflation as measured by the annual growth rate of the GDP implicit deflator shows the rate of price change in the economy as a whole. The GDP implicit deflator is the ratio of GDP in current local currency to GDP in constant local currency.
Inflation: GDP deflator (annual %) in World.
Comparison of World and Indian Economy on CPI basis:
During the fifties, in fact, the average decadal rate of inflation was very low at 1.7 per cent, with the rate varying in a wide range from a negative value of 12.5 per cent to a positive value of 13.8 percent. The minimum inflation at a negative rate in 1952-53 was in response to...
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