Inflation rate refers to the percentage change in the general level of prices for goods and services over a specific period, typically a year. It measures the rate at which the purchasing power of a currency is eroded over time. Inflation is often expressed as an annual percentage increase in the Consumer Price Index (CPI) or another inflation index.
Inflation is a natural economic phenomenon that reflects the increase in prices over time due to various factors such as rising production costs, changes in demand and supply dynamics, changes in government policies, and monetary factors. When the inflation rate is positive, it means that prices are increasing, and the purchasing power of money is decreasing.
Current inflation rate in India is 4.7% of 2023(April).
