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A complete history of inflation in India since the 1960s

This article provides a reference list of inflation in India every year since 1960.

A complete history of inflation in India since the 1960s


Posted on 12 Dec 2023
Author: Sayan Sircar
7 mins read
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This article provides a reference list of inflation in India every year since 1960.

A complete history of inflation in India since the 1960s

Disclaimer: We have assumed 2023 inflation to be 7.00% as per interim RBI data. The final figure will be known in early 2024. Inflation data is from worlddata.info website.

📚 Topics covered:

Introduction

Historical inflation in India since the 1960s

Inflation is one of the axioms of personal finance and enjoys the same permanence as death and taxes.

Investors who are looking for safety in debt as an asset class would have a perpetual worry as to whether debt products beat inflation or not. Given the downtrend in interest rates in the last decade, anyone dependent on debt as an asset class, pensioners, and general investors allocating a part of their portfolio to debt products have a cause for concern. On the other hand, investors with an equity-heavy portfolio should have fared better vs inflation over time.

Chart: Arthgyaan • Source: RBI • Get the data

Falling interest rates have led to two effects on portfolio valuation and income. First, long-duration bonds have risen in price over this period while interest income from fixed deposits, small saving schemes (like provident fund, NSC) and annuities have gradually come down. Similarly, falling rates positively impact equity valuation since the cost of capital reduces.

Decade-wise inflation in India

In this decade, we are currently in a period of record-low inflation.

Decade Average inflation
1960s 6.17%
1970s 7.79%
1980s 8.95%
1990s 9.00%
2000s 6.29%
2010s 6.23%
2020s 5.91%

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Historical inflation data

Inflation in the 2020s

Year Inflation
2021 5.13%
2022 6.70%
2023 7.00%

Note: We have assumed 2023 inflation to be 7.00% as per interim RBI data. The final figure will be known in early 2024.

Inflation in the 2010s

Year Inflation
2011 8.91%
2012 9.48%
2013 10.02%
2014 6.67%
2015 4.91%
2016 4.95%
2017 3.33%
2018 3.94%
2019 3.73%
2020 6.62%

Inflation in the 2000s

Year Inflation
2001 3.78%
2002 4.30%
2003 3.81%
2004 3.77%
2005 4.25%
2006 5.80%
2007 6.37%
2008 8.35%
2009 10.88%
2010 11.99%

Inflation in the 1990s

Year Inflation
1991 13.87%
1992 11.79%
1993 6.33%
1994 10.25%
1995 10.22%
1996 8.98%
1997 7.16%
1998 13.23%
1999 4.67%
2000 4.01%

Inflation in the 1980s

Year Inflation
1981 13.11%
1982 7.89%
1983 11.87%
1984 8.32%
1985 5.56%
1986 8.73%
1987 8.80%
1988 9.38%
1989 7.07%
1990 8.97%

Inflation in the 1970s

Year Inflation
1971 3.08%
1972 6.44%
1973 16.94%
1974 28.60%
1975 5.75%
1976 -7.63%
1977 8.31%
1978 2.52%
1979 6.28%
1980 11.35%

Inflation in the 1960s

Year Inflation
1961 1.68%
1961 1.70%
1962 3.63%
1963 2.95%
1964 13.36%
1965 9.47%
1966 10.80%
1967 13.06%
1968 3.24%
1969 -0.58%
1970 5.09%

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This post titled A complete history of inflation in India since the 1960s first appeared on 12 Dec 2023 at https://arthgyaan.com


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