| Inflation generates and widens the socio-economic inequality among the different groups of people. It creates bad relations between the labour and capital. It rises to many social and moral evils like bribery, corruption, black-marketing etc. Poverty is the root of all evils. The variations in the Wholesale Price Index (WPI) were from 3.3 to 13.7 percent in the period 1991-2013. The overall average annual growth rate of inflation was 6.85 percent in the period 1991-2012. The highest frequency of range that is the modal range of inflation was 3 percent to 6 percent during the entire study period. In the study period, Eight Five Year Plan (1992-93 to 1996-97) has seen highest inflation rate and followed by Eleventh Five Year Plan (2007-12). During the period 1991-2012, the average annual growth rate of inflation related to food articles and non-food articles were 8.26 and 7.7 percent respectively.During 1992-93, prices increased at an average annual rate of 10.1 percent. |