Just as India recovered from the crisis sooner than other countries, inflation too caught up with us sooner than elsewhere. Inflation, as measured by the wholesale price index (WPI), went briefly into negative territory for a few months in 2009 but started rising sharply thereafter, clocking a peak rate of 10.9 per cent in April 2010.
Average WPI inflation was 9.6 per cent in fiscal year 2010/11, 8.9 per cent in 2011/12 and 7.5 per cent during the first ten months of 2012/13 (Chart-4).