Average inflation in India

International Monetary Fund · Annual · Importance

IMF forecast (WEO): 2026: 4.7% 2027: 4.0% 2028: 4.0% 2029: 4.0% 2030: 4.0% 2031: 4.0%

3.4% (1999) ANUAL · % · Annual · CSV

Period	%
Jan 1999	3.4%
Jan 1998	13.1%
Jan 1997	6.8%
Jan 1996	9.4%
Jan 1995	10.0%
Jan 1994	10.3%
Jan 1993	7.3%
Jan 1992	9.9%
Jan 1991	13.5%
Jan 1990	11.2%

About this indicator

Source

International Monetary Fund

Frequency

Annual

Release

Published annually, covering the full year and subject to revision.

What it is

India's average annual inflation measures the mean change in consumer prices over the year for the household basket. It is based on the Consumer Price Index (CPI) published by the National Statistical Office under the Ministry of Statistics (MoSPI).

How it's calculated

It is the average of the monthly year-on-year changes in the CPI (Combined, rural and urban), built from price surveys across a wide sample of outlets, with basket weights and a periodically updated base year. Food carries a very large weight.

Market implications

Inflation is the Reserve Bank of India's central reference, with a 4% target and a +/- 2-point band, and it drives the path of interest rates. A hotter-than-expected print points to tighter policy and can support the rupee.

Limitations

India's basket is heavily weighted to food, giving it high volatility tied to the monsoon and harvests. Underlying trends are read through core CPI, which strips out food and energy; the figure covers only the goods and services in the basket.