Project report on inflation

India: Inflation rate from 1986 to 2026:-

The graph depicts India's inflation rate from 1986 to 2020, with estimates until 2026. The price increase of a particular product basket is used to determine the inflation rate. This product basket includes items and services that the average customer purchases during the year. Groceries, clothing, rent, electricity, telephones, recreational activities, and raw materials (e.g., gas, oil), as well as federal fees and taxes, are all included. In comparison to the previous year, India's inflation rate was roughly 6.18 percent in 2020. For further information, look at the numbers on India's economic growth.

India's inflation rate and economy
Inflation is defined as an increase in the price of goods and services over a period of time, as opposed to deflation, which is defined as a drop in the price of similar products and services. Inflation is a key measure of a country's economic health. The inflation rate is the rate at which prices, products, and services in an economy grow in general, and how this impacts the cost of living of individuals who live in that country. It has an impact on interest rates paid on savings and mortgages, as well as the amount of state pensions and benefits received. For example, a 4% increase in inflation in 2011 would indicate that an individual would have to spend 4% more on items than he would have in 2010.
Over the previous ten years, India's inflation rate has risen. Since 2010, however, it has been declining somewhat. India's economy, on the other hand, has been performing admirably for years, with its GDP constantly expanding and its national debt falling. With a state deficit of more than 9% of GDP, the budget balance in proportion to GDP does not appear to be in good shape.

Conclusion:-

• Inflation is on the decline in general. Even though the RBA has stated that they expect the next interest rate move to be higher, I am sceptical because there are no signs of inflation ramping up, and with the property market in a slump, higher interest rates could have a detrimental impact on economic activity.
• Because the United States and many other nations have begun to raise interest rates, the Australian dollar should weaken as a result of interest rate parity theory.