Why inflation is rising in India

For representative purposes | Photo Credit: Getty Images Inflation, except during the COVID-19 pandemic, has remained relatively low in India for over a decade. But it is back with a bang. Wholesale Price Index (WPI) inflation is hovering close to 10% in June (Chart 1a). After remaining low — negative, or close to 0 — until December last year, the climb started with a sharp jump since March this year.Even those with only a fleeting connection to economics believe that prices rise when demand outpaces supply (overheating), and vice versa. But is that really the case? Published - July 21, 2026 08:30 am IST