Current Inflation

This brief paper traces the changes in the Consumer Price Index for Industrial Workers since 1991 till May 2008, and draws attention to the fact that the inflation during the last two and half years has not been as high as in most of the years in the 1990s,n or has it been higher during the first five months of this year compared to the same period in the previous two years. It lists the trend in per capita availability of foodgrains during the last two decades to suggest that its trend influences the price level. It discusses broadly the food and crude oil situation and suggests that the trend in the price of the latter is irreversible and the economy should be reoriented to take care of this.