The slide contain over view of 2009 infliation in India.

8. Year Inflation rate (consumer prices) (%) 2000 6.7 2001 5.4 2002 5.4 2003 5.4 2004 3.8 2005 4.2 2006 4.2 2007 5.3 2008 6.4 2009 8.3

9. In olden days people use to buy food grains and keep stocks for a year or two so that They used to buy all essential food commodities when prices are low because of fresh crop And ample of supply would be there in Market. When the crop ended up or prices started Rising it would not effect them in times of shortage. But, in modern economy government plays a major role in controlling Inflation. Government introduces various reforms like Giving Subsidies Government rationing Quotas CRR(Credit reserve ratio) all this is done to protect the poor people and fixed income groups so that they can buy basic essential commodities

10. Black Marketing in food grains .Investors keep stock piles in godowns and wait for prices to rise SO THAT THEY CAN GET HUGE PROFITS THIS CREATES shortage of goods which inturn increases the prices . Rising inflation was the most recent ticklish political issue that hit the Manmohan Singh government. But was inflation rising because of price rise in essential commodities. Also it is because of wrong methodologies used by the government to calculate inflation effect all goods and services in the country.