This document defines inflation and describes its types including creeping, walking, running, galloping, and hyper inflation. It lists causes of inflation such as demand pull, cost push, money supply expansion, population increase, and credit expansion. Methods to measure inflation and India's inflation rates are presented. Reasons for India's high inflation in the 1990s and post-1991 are discussed, including balance of payments changes, fiscal deficit, rupee depreciation, and global oil price increases. In conclusion, pre-reform inflation was due to domestic factors while post-reform inflation is more influenced by global scenarios.

1. Presented By: Aditi Thakur, Ishita Suman, Divesh Sahni,
Dering Naben, Anmol Ratan

2. INFLATION
LAYMEN
Rise in Price
TECHNICAL
Inflation can be defined as the rise in overall
price level in the economy i.e. rise in prices of all
the goods and services

3. CREEPING Or MODERATE
INFLATION
WALKING INFLATION
Types Of Inflation
RUNNING INFLATION
GALLOPING INFLATION
HYPER INFLATION

4. Creeping Inflation
The inflation of a nation increases gradually, but
continually, over time
Walking Inflation
When the price rise is moderate. It is a warning signal
for the government to control it before it turns into
running inflation
Running Inflation
A rapid acceleration in the rate of rising prices
more than 10% per annum is referred as Running
Inflation

5. Galloping Inflation
Hyper Inflation
Prices rise by double or triple digit inflation rates like
400% or 999% per annum
It is a stage of very high rate of inflation

6. Demand pull inflation (ex: petrol)
Cost push inflation (ex: cement)
Over- Expansion of Money Supply
Causes Of
Inflation
Increase in Population
Expansion of Bank Credit
Black Money
Poor Performance of Farm Sector

7. Methods To
Measure
Inflation

8. Dr Rangarajan Chairman, (PMEAC), on inflation in India:
“In other countries, the growth rate is low, but at the same
time inflation is also low. Whereas in our country, while growth
is slowing, inflation remains at a high level.”
Inflation in India
- Overview
Inflation Rate WPI (Feb 2013): 6.84%
Inflation Rate CPI (Feb 2013) : 10.91 %
All time high (Sept 1974): 34.7%
Record low (May 1976) : -11.3

9. REASONS OF
INFLATION IN
1990S

11. Reasons of
Inflation Post
1991
Change In BOP
Low Industrial Growth Sector
Fiscal Deficit
Rupee Depreciation
Current Account Deficit
Increase in oil prices twice during the period
New Printing Of Money
Reduced Interest Rates
Increasing prices – particularly of Oilseeds and Edible oils
Defence expenditures

15. Pre-reforms inflation was mostly because of the factors
like drought, war, global inflation, rupee devaluation, etc.
CONCLUSIONS
In India, post reforms there has been inflation mostly
because of global scenarios which maybe recession or
rising crude oil prices that led to tremendous increase in
the general price level.
With the introduction of reforms like Globalization in
India, the economy has been affected to a larger extent
because of changes happening in the outside world in
both the times whether good or bad.

16. THANK YOU