The maximum inflation in India was recorded in the year ___________ at 25.2 per cent was mainly attributed to the failure of kharif crops in the previous year and also to the hike in crude oil prices in the previous year.
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Correct answer: C
Explanation
The correct answer is option 3 i.e. 1974-75
At nine percent, the average inflation rate throughout the 1970s was still greater.
- The failure of the kharif harvests in 1972–73 and the increase in the price of crude oil in 1973 were the main causes of the maximum inflation that was recorded in 1974–75, which was 25.2%.
- In response to the significant anti-inflationary measures implemented by the government, the next year, 1975–76, saw the recording of the minimum inflation rate for the decade at (−) 1.1%.
- However, the years 1979–1980 saw a sharp return of inflationary tendencies, mostly as a result of low agricultural production and the second increase in global oil prices.
- In terms of the state of prices, the decade was the most turbulent.