INFLATION AND COST OF LIVING IN INDIA WITH SPECIAL REFERENCE TO BANGALORE

Inflation and the rising cost of living remain central concerns in Indian economic discourse, shaping household budgets and standards of living. This paper analyses inflationary trends in India, tracing their historical evolution and examining the monetary, structural and external factors behind price changes. Using secondary data from MoSPI, RBI and government sources, it reviews 2025-26 CPI and food inflation trends, showing that food prices, not the broad price level, have driven the recent uptick and that rural and low-income households bear a disproportionate burden. As a focused case, the paper examines Bangalore, where rent inflation has outpaced income growth, disaggregating cost pressure by expenditure category and population group. It weighs the merits of moderate inflation against the costs of persistent high inflation, and offers policy suggestions on supply chains, housing and monetary-fiscal coordination. The study concludes that while headline inflation remains within the RBI's target band, coordinated action is needed to protect vulnerable groups from eroding purchasing power.

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