What are the major causes of inflation in India

The major causes of inflation in India can be explained as follows: 1. Demand-pull inflation: This occurs when demand for goods and services in the economy exceeds the available supply. Reasons for this can include increased consumer spending, government expenditure, or foreign direct investment. 2. Cost-push inflation: This type of inflation is driven by increased production costs, such as rising wages, raw material costs, or taxes. These higher costs are often passed on to consumers in the form of higher prices. 3. Supply shocks: Disruptions in the supply of goods and services can lead to inflation. For example, natural disasters, global pandemics, or geopolitical tensions can impact the availability and cost of essential commodities. 4. Monetary factors: An increase in the money supply without a corresponding increase in goods and services can result in inflation. This can be influenced by government policies, such as excessive printing of currency or expansionary monetary policy. 5. Imported inflation: Inflation can also arise from increases in the prices of imported goods and services. This can be due to factors like changes in exchange rates, global oil prices, or import duties. It is important to note that inflation is influenced by a combination of these factors, and their impact can vary over time.