This document analyzes inflation trends in the Indian economy in recent years. It defines inflation and identifies its major causes such as demand-pull, cost-push, and imported inflation. Food prices and crude oil prices have been major drivers of inflation in India. The document discusses how inflation is measured using various price indices and formulas. The effects of inflation include hoarding and reduced savings. To control inflation, the Reserve Bank of India raises interest rates and the government uses fiscal policies. Inflation poses a challenge to India's economic growth.