High inflation has been with us in India for the last four decades. Most recently, we have experienced an average of more than 9 per cent inflation between 2006 and 2013. What are the costs of having high inflation? Clearly, everyone understands the costs of hyperinflation, when prices are rising every minute. Money is then a hot potato that no one wants to hold, with people rushing straight from the bank to the shops to buy goods in case their money loses value along the way.
