Inflation India 2021

Average inflation: 4.9%

Current Inflation

Inflation is high at 4.9%, well above the ECB target.

Peak and Trough

The highest inflation was in March at 5.7%. The lowest inflation was in January at 3.2%.

Highest month
March: 5.7%
Lowest month
January: 3.2%
Difference
2.5 percentage points
Months with data
12 of 12

Historical Context

Current inflation is around the 5-year average of 5.1%.

5-year average
5.1%
10-year average
6.3%
All-time high (2010)
12.1%
All-time low (2017)
2.5%

Trend

Inflation shows a downward trend. Compared to 2020, inflation has fallen by +0.7 percentage point.

Change vs. previous year
-0.7 percentage points
Largest monthly swing
January: -4.3 percentage points

ECB Target

Inflation is 2.9% above the ECB target of 2.0%. This means purchasing power is declining faster than intended.

Purchasing Power

At this inflation rate, purchasing power noticeably decreases. Without a salary increase, you can buy less with the same money.

What you could buy for €100 this year will cost approximately €104.90 next year at this inflation rate.

Multi-year trend

Monthly figures 2021

Month overview

Month Inflation Difference vs. 2020
January 3.2% -4.3
February 4.5% -2.3
March 5.7% +0.2
April 5.1% -0.3
May 5.3% +0.2
June 5.6% +0.5
July 5.3% 0.0
August 4.8% -0.8
September 4.4% -1.2
October 4.5% -1.4
November 4.8% -0.5
December 5.6% +1.9
Average 4.9%

Data source

Data from OECD. Last updated: 20/12/2025.

See also