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
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7 mins read
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This article provides a reference list of inflation in India every year since 1960.
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
- Decade-wise inflation in India
- How to choose assets that beat inflation?
- Historical inflation data
Introduction
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% |
How to choose assets that beat inflation?
Choosing the right assets to invest so that you can beat inflation is possible and is discussed here: Inflation: the impact on your goals and how to choose assets that beat it
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% |
Related Articles
- Inflation: the impact on your goals and how to choose assets that beat it
- Can debt funds beat inflation?
- You cannot beat inflation even with equity mutual funds: here's why
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