7.18         ndian      onom
               Table 7.3 All India Weights of different Sub-groups within Consumer Food Price Index
       Su -Group                        Su -group Description                                 Rural            r an       Com ined
          Code
           (1)                                       (2)                                        (3)             (4)            (5)
         1.1.01       Cereals and products                                                    26.14           22.24          24.77
         1.1.02       Meat and fish                                                            9.26            9.23           9.25
         1.1.03       Egg                                                                      1.05            1.21           1.10
         1.1.04       Milk and products                                                       16.34          17.98          16.92
         1.1.05       Oils and fats                                                            8.90            9.49           9.11
         1.1.06       Fruits                                                                   6.10            9.80           7.40
         1.1.07       Vegetables                                                              15.78          14.88          15.46
         1.1.08       Pulses and products                                                      6.25            5.84           6.11
         1.1.09       Sugar and confectionery                                                  3.61            3.28           3.49
         1.1.10       Spices                                                                   6.57            6.05           6.39
                                 All Sub-groups of CFPI                                      100.00          100.00         100.00
     Source: CSO, February 2015. Here, CPFI stands for Consumer Food Price Index.
     trenDs in inflAtion                                                 developing economies.48 But it has sporadic
                                                                         incidences of double-digit tendencies mainly
     Inflation has been a highly sensitive issue in
                                                                         due to supply-side shortfalls caused by droughts
     India right since Independence and it has been so
     during the ongoing reforms process period, too. It                  (monsoon failures), price rise of crude oil in the
     has an incessant tendency of resulting into ‘double                 international market or fund diversions due to
     digits’, taking politically explosive proportions                   wars (the Chinese war of 1962 and the Pakistan
     like governments falling at the Centre and state                    wars of 1965–66 and 1971). The decadal inflation
     levels due to price rise of the commodities such as                 in India has been as given below:49
     edible oil, onion, potato, etc. In such situations the                     (i) During 1950s: remained at 1.7 per cent.
     government in general has been taking recourse                            (ii) During 1960s: remained at 6.4 per cent.
     to tighter money supply to contain the state level                       (iii) During 1970s: remained at 9.0 per cent.
     disturbances due to price rise of the commodities                        (iv) During 1980s: remained at 8.0 per cent.
     such as edible oil, onion, potato, etc., although it
                                                                               (v) During 1990s: remained at 9.5 per cent
     has contained inflation, but at the cost of higher
                                                                                     (though it reached 0.5 per cent by the
     growth. Price rise got rooted in India’s political
     psyche in such a way that the government did check                              fourth quarter of the fiscal 1998–99)
     frequent famines quickly at the cost of long-term                        (vi) During 2000s: Inflation was at lower levels
     endemic hunger and sustained malnutrition.47                                    between 2000–08 (from 3 to 5 per cent).
          Decadal inflation in India looks                                           But from 2009 onwards it started moving
     comparatively normal with reference to many                                     upward with ‘sttuborn’ tendencies.50
                                                                            48.    Rosser and Rosser, Comparative Economics in a
       47.   Pranab Bardhan agrees to Amartya Sen (How is India
                                                                                   Transforming World Economy.
               oing , New York Review of Books, December 1982)
             in A olitical conomy erspective on evelopment                  49.    Based on Rangarajan, Indian Economy, p. 63; Jalan,
             in Bimal Jalan ed. Indian Economy Problems and                 50.    Ministry of Finance, Economic Survey 2013–14 (New
             Prospects, (New Delhi: Penguin Books, 1992), p. 369.                  Delhi: Government of India, 2014), pp. 75–77.