The current CPI inflation rate in India is a critical economic indicator that measures the average price level of a basket of goods and services consumed by households in the country. It is used to track changes in the cost of living over time and can have significant implications for the purchasing power of consumers.
As of 2022, the CPI inflation rate in India stands at 6.08%, according to data from the Indian government’s statistical agency. This represents an increase from the previous year, when the inflation rate was 5.1314%.
Tabular column showing India’s CPI and inflation rates since 1960
| Year | CPI | Inflation Rate (%) |
|---|---|---|
| 1960 | 100 | 1.7799% |
| 1961 | 101.78 | 1.6952% |
| 1962 | 105.68 | 3.6322% |
| 1963 | 108.81 | 2.9462% |
| 1964 | 122.82 | 13.3553% |
| 1965 | 133.09 | 9.4748% |
| 1966 | 146.29 | 10.8018% |
| 1967 | 161.92 | 13.0622% |
| 1968 | 167.56 | 3.2374% |
| 1969 | 166.49 | -0.5841% |
| 1970 | 173.84 | 5.0923% |
| 1971 | 179.50 | 3.0799% |
| 1972 | 189.73 | 6.4421% |
| 1973 | 214.34 | 16.9408% |
| 1974 | 274.36 | 28.5987% |
| 1975 | 290.91 | 5.7484% |
| 1976 | 270.64 | -7.6339% |
| 1977 | 292.39 | 8.3075% |
| 1978 | 299.87 | 2.523% |
| 1979 | 315.82 | 6.2757% |
| 1980 | 351.79 | 11.3461% |
| 1981 | 396.74 | 13.1125% |
| 1982 | 425.44 | 7.8907% |
| 1983 | 478.70 | 11.8681% |
| 1984 | 517.61 | 8.3189% |
| 1985 | 547.76 | 5.5564% |
| 1986 | 598.69 | 8.7297% |
| 1987 | 653.13 | 8.8011% |
| 1988 | 709.60 | 9.3835% |
| 1989 | 761.02 | 7.0743% |
| 1990 | 836.00 | 8.9712% |
| 1991 | 948.97 | 13.8702% |
| 1992 | 1060.88 | 11.7878% |
| 1993 | 1130.35 | 6.3269% |
| 1994 | 1243.92 | 10.2479% |
| 1995 | 1358.89 | 10.2249% |
| 1996 | 1488.35 | 8.9772% |
| 1997 | 1614.87 | 7.1643% |
| 1998 | 1851.75 | 13.2308% |
| 1999 | 1939.91 | 4.6698% |
| 2000 | 2029.87 | 4.0094% |
| 2001 | 2124.68 | 3.7793% |
| 2002 | 2219.14 | 4.2972% |
| 2003 | 2324.59 | 3.8059% |
| 2004 | 2440.86 | 3.7673% |
| 2005 | 2581.53 | 4.2463% |
| 2006 | 2772.94 | 5.7965% |
| 2007 | 2964.47 | 6.3729% |
| 2008 | 3237.29 | 8.3493% |
| 2009 | 3629.38 | 10.8824% |
| 2010 | 4124.77 | 11.9894% |
| 2011 | 4577.07 | 8.9118% |
| 2012 | 5065.80 | 9.479% |
| 2013 | 5527.68 | 10.0179% |
| 2014 | 5931.78 | 6.6657% |
| 2015 | 6232.50 | 4.907% |
| 2016 | 6527.69 | 4.9482% |
| 2017 | 6787.62 | 3.3282% |
| 2018 | 7198.45 | 3.9388% |
| 2019 | 7627.10 | 3.7295% |
| 2020 | 8147.79 | 6.6234% |
| 2021 | 8657.96 | 5.1314% |
| 2022 | 9248.3472 | 6.08% |
But what exactly is the CPI inflation rate and how is it calculated?
The Consumer Price Index (CPI) is a measure of the average price level of a basket of goods and services consumed by households. It is calculated by taking a representative sample of prices of various goods and services and comparing them to a base year. The inflation rate is the percentage change in the CPI from one period to another.
To calculate the inflation rate for a given year, you can use the following formula:
Inflation rate = (CPI in current year – CPI in previous year) / CPI in previous year * 100
For example, to calculate the inflation rate for the year 1961, you would use the following calculation:
Inflation rate for 1961 = (101.78 – 100) / 100 * 100 = 1.78%
You can use this formula to calculate the inflation rate for each year in the data provided.
Alternatively, you can use our India inflation rate calculator to see how inflation is grown over the years and how it has impacted your money.
So what are the key drivers of inflation in India and how does the government try to manage it?
One of the main factors that affects the CPI inflation rate in India is the cost of food and fuel. Food and fuel are essential items that make up a significant portion of the basket of goods and services consumed by households in the country. When the prices of these items increase, it can lead to an increase in the overall CPI inflation rate.
The cost of food in India is affected by various factors, including the availability of food grains, the cost of production, and the supply and demand for food items. For example, a drought or a natural disaster can lead to a decrease in the supply of food grains, which can cause the prices of food items to increase. Similarly, an increase in the cost of production, such as an increase in the cost of fuel or labor, can also lead to an increase in the prices of food items.
Fuel prices in India are also an important factor that affects the CPI inflation rate. Fuel prices are influenced by global oil prices, which are affected by a variety of factors, including the demand for oil, the supply of oil, and geopolitical tensions. When global oil prices increase, it can lead to an increase in the prices of fuel in India, which can contribute to an increase in the CPI inflation rate.
In addition to the cost of food and fuel, the supply of money in the economy is another factor that can affect the CPI inflation rate in India. When the supply of money in the economy increases, it can lead to an increase in demand for goods and services, which can cause the prices of these items to increase. On the other hand, a decrease in the supply of money can lead to a decrease in demand, which can cause the prices of goods and services to decrease.
Overall, the CPI inflation rate in India is affected by a variety of factors, including the cost of food and fuel, the supply of money, and the overall health of the economy. By understanding these factors, policymakers and market analysts can better predict and manage inflation in the country.
To try to control inflation, the Indian government uses a variety of tools, including adjusting interest rates and implementing monetary policies. These efforts are aimed at maintaining price stability and promoting economic growth.
To provide some context, let’s take a look at the inflation rate in India over the past several decades.
According to the data provided, the inflation rate in India was relatively low in the 1960s, with an average rate of just over 3% per year. However, it began to rise in the 1970s, reaching a peak of 28.5987% in 1974. Since then, the inflation rate in India has generally trended downward, with a few spikes in the 1990s and early 2000s.
In recent years, the inflation rate in India has been relatively stable, hovering around the 5% mark. While this is still higher than some other countries, it is lower than the double-digit rates seen in the 1970s and 1980s.
It is worth noting that the inflation rate in India can vary widely from year to year and can be influenced by a range of factors, both domestic and global. For example, natural disasters or political instability can disrupt supply chains and drive up the price of goods, while economic downturns or deflation can lead to lower prices.
Understanding the current CPI inflation rate in India is essential for individuals and businesses looking to make informed financial decisions. By keeping an eye on this key economic indicator, you can better understand the costs of goods and services and plan for the future.