Repressed Inflation-There s Nothing Official about It !

Repressed Inflation There's Nothing Official about It ! Pulapre Balakrishnan The government's claim in the Economic Survey of control over inflation through slowing of monetary growth does not stand scrutiny. The consumer price index shows no reduction in the inflation rate. The reduction in the wholesale price index is agricultural prices led and cannot have been caused by aggregate demand shifts of any kind. Over the last year or two the Indian economy has in fact been characterised by repressed inflation.