Inflation India 2016

Average inflation: 5.0%

Current Inflation

Inflation is very high at 5.0%, far above the ECB target.

Peak and Trough

The highest inflation was in May at 6.6%. The lowest inflation was in December at 2.2%.

Highest month
May: 6.6%
Lowest month
December: 2.2%
Difference
4.4 percentage points
Months with data
12 of 12

Category Insights

The highest price increase was in Alcoholic beverages, tobacco and narcotics with an average of 7.4%. The lowest price increase was in Transport with an average of 1.9%.

Highest increase
Alcoholic beverages, tobacco and narcotics: 7.4%
Lowest increase
Transport: 1.9%

Historical Context

Current inflation is 2.5% lower than the 5-year average of 7.5%.

5-year average
7.5%
10-year average
8.4%
All-time high (2010)
12.1%
All-time low (2004)
3.8%

Trend

Inflation shows a downward trend. Compared to 2015, inflation has fallen by +0.9 percentage point.

Change vs. previous year
-0.9 percentage points
Largest monthly swing
November: -4.1 percentage points

ECB Target

Inflation is 3.0% above the ECB target of 2.0%. This means purchasing power is declining faster than intended.

Purchasing Power

At this high inflation rate, purchasing power rapidly decreases. This has a major impact on households, especially without adequate salary increases.

What you could buy for €100 this year will cost approximately €105.00 next year at this inflation rate.

Multi-year trend

Monthly figures 2016

Inflation by category

Food and non-alcoholic beverages
5.3%
+0.3vs avg.
More details →
Alcoholic beverages, tobacco and narcotics
7.4%
+2.4vs avg.
More details →
Clothing and footwear
5.3%
+0.3vs avg.
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Housing, water, electricity, gas and other fuels
4.5%
-0.5vs avg.
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Furnishings, household equipment and maintenance
4.6%
-0.4vs avg.
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Health
4.9%
-0.1vs avg.
More details →
Transport
1.9%
-3.1vs avg.
More details →
Communication
2.5%
-2.5vs avg.
More details →
Recreation and culture
4.2%
-0.8vs avg.
More details →
Education
5.7%
+0.7vs avg.
More details →
Restaurants and hotels
6.0%
+1.0vs avg.
More details →
Miscellaneous goods and services
6.4%
+1.4vs avg.
More details →

Inflation differs per product group. Click on a category for the historical trend.

Month overview

Month Inflation Difference vs. 2015
January 5.9% -1.3
February 5.5% -0.8
March 5.5% -0.8
April 5.9% +0.1
May 6.6% +0.9
June 6.1% 0.0
July 6.5% +2.1
August 5.3% +1.0
September 4.1% -1.0
October 3.3% -3.0
November 2.6% -4.1
December 2.2% -4.1
Average 5.0%

Data source

Data from OECD. Last updated: 11/01/2026.

See also