Lok Sabha Question No. 34 (UNSTARRED), answered on 2023-12-04
Subject: Inflation
Ministry: FINANCE
Asked by: Komati Reddy Venkat Reddy, Manne Srinivas Reddy, Raghu Ramakrishna Raju Kanumuru, E. T. Mohammed Basheer

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF ECONOMIC AFFAIRS

## LOK SABHA

## UNSTARRED QUESTION NO. 34

TO BE ANSWERED ON 04.12.2023

## INFLATION

34.   SHRI KOMATI REDDY VENKAT REDDY: SHRI E.T. MOHAMMED BASHEER: SHRI MANNE SRINIVAS REDDY: SHRI KANUMURU RAGHU RAMA KRISHNA RAJU:

Will the Minister of FINANCE be pleased to state:

- (a) whether the Government has the inflation records since 1947;
- (b) if so, the details thereof;
- (c) whether inflation is affecting many sectors and posing great challenges to our economy;
- (d) if so, the details thereof and the reasons therefor; and
- (e) the corrective steps taken/being taken by the Government to curtail the same?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI PANKAJ CHAUDHARY)

- (a) & (b): The time series of all-India inflation rate (Y-o-Y) based on Wholesale Price Index (WPI) and Consumer Price Index-Combined (CPI-C) is presented in Annexure I.
- (c) & (d): Prices of commodities are affected by several factors, such as mismatch between demand  and  supply,  seasonality  in  farm  output,  supply  chain  constraints,  increase  in international prices, geo-political factors, etc. The decline in inflation observed during AprilOctober 2023 has mitigated sectoral and macroeconomic challenges.
- (e):  The  Government  monitors  prices  of  22  essential  food  commodities  to  take  corrective steps  against  food  inflation.  The  Government  has  taken  various  measures  to  augment domestic availability and stabilize the prices of essential  items  in  the  country.  These  steps, inter-alia ,  include  releases  from  the  buffer  stock,  imposition  of  stock  limits,  monitoring  of stocks declared by entities, and requisite changes in trade policy instruments. The Government has, from time to time, calibrated the import duty and excise duty on specified key inputs used in the economy.

*** ***

## Annexure I

All-India (Y-o-Y) inflation rate (%) based on Wholesale Price Index (*)

| Year    | Inflation   | Year    | Inflation   | Year              |   Inflation |
|---------|-------------|---------|-------------|-------------------|-------------|
| 1948-49 | 21.9        | 1973-74 | 20.2        | 1998-99           |         6.9 |
| 1949-50 | 2.4         | 1974-75 | 25.2        | 1999-00           |         3   |
| 1950-51 | 6.3         | 1975-76 | -1.1        | 2000-01           |         7.2 |
| 1951-52 | 6.2         | 1976-77 | 2.1         | 2001-02           |         3.6 |
| 1952-53 | -12.5       | 1977-78 | 5.2         | 2002-03           |         3.4 |
| 1953-54 | 4.4         | 1978-79 | 0.1         | 2003-04           |         5.5 |
| 1954-55 | -5.0        | 1979-80 | 17.1        | 2004-05           |         6.5 |
| 1955-56 | -4.5        | 1980-81 | 18.2        | 2005-06           |         4.4 |
| 1956-57 | 14.8        | 1981-82 | 9.4         | 2006-07           |         5.4 |
| 1957-58 | 3.9         | 1982-83 | 4.9         | 2007-08           |         4.6 |
| 1958-59 | 1.2         | 1983-84 | 7.6         | 2008-09           |         8.4 |
| 1959-60 | 4.4         | 1984-85 | 6.4         | 2009-10           |         3.8 |
| 1960-61 | 6.6         | 1985-86 | 4.5         | 2010-11           |         9.6 |
| 1961-62 | 0.2         | 1986-87 | 5.8         | 2011-12           |         8.9 |
| 1962-63 | 2.2         | 1987-88 | 8.2         | 2012-13           |         7.4 |
| 1963-64 | 5.8         | 1988-89 | 7.5         | 2013-14           |         6   |
| 1964-65 | 12.9        | 1989-90 | 7.4         | 2014-15           |         2   |
| 1965-66 | 7.6         | 1990-91 | 10.3        | 2015-16           |        -2.5 |
| 1966-67 | 16.1        | 1991-92 | 13.7        | 2016-17           |         3.7 |
| 1967-68 | 11.3        | 1992-93 | 10.0        | 2017-18           |         3   |
| 1968-69 | -1.1        | 1993-94 | 8.3         | 2018-19           |         4.3 |
| 1969-70 | 3.8         | 1994-95 | 10.9        | 2019-20           |         1.7 |
| 1970-71 | 5.5         | 1995-96 | 7.7         | 2020-21           |         1.3 |
| 1971-72 | 4.0         | 1996-97 | 6.3         | 2021-22           |        13   |
| 1972-73 | 10.1        | 1997-98 | 4.8         | 2022-23           |         9.4 |
|         |             |         |             | 2023-24 (Apr-Oct) |        -1.6 |

Source: Office of Economic Adviser, DPIIT

(*) Note: Inflation rates for: 1948-49 to 1959-60 with base year 1939=100, 1960-61 to 1967-68 with base year 1952-53=100,  1968-69 to 1971-72  with  base  year  1961-62=100,  1972-73 to 1981-82  with  base  year  197071=100, 1982-83 to 1999-00 with base year 1981-82=100, 2000-01 to 2009-10 with base year 1993-94=100, 2010-11 to 2016-17 with base year 2004-05=100 and 2017-18 to 2023-24 with base year 2011-12=100.

All-India annual inflation rate based on Consumer Price Index-Combined

| Year              |   Annual Inflation (%) (Base 2012=100) |
|-------------------|----------------------------------------|
| 2012-13           |                                    9.9 |
| 2013-14           |                                    9.5 |
| 2014-15           |                                    5.9 |
| 2015-16           |                                    4.9 |
| 2016-17           |                                    4.5 |
| 2017-18           |                                    3.6 |
| 2018-19           |                                    3.4 |
| 2019-20           |                                    4.8 |
| 2020-21           |                                    6.2 |
| 2021-22           |                                    5.5 |
| 2022-23           |                                    6.7 |
| 2023-24 (Apr-Oct) |                                    5.4 |

Source: RBI