Inflation is a major macroeconomic issue that affects the purchasing power of money and overall economic stability. It occurs when the general price level of goods and services rises continuously over time due to excessive money supply, rising production costs, and increasing demand. This article discusses the meaning, types, causes, and methods of measuring inflation in India using indicators such as the Consumer Price Index (CPI), Wholesale Price Index (WPI), and GDP Deflator. It also highlights the factors influencing inflation, measures adopted by the government and Reserve Bank of India to control inflation, and the positive and negative effects of inflation on different groups in society.