India's growth experience during the last two decades has been highlighted by initiatives, measures and improvements in financial sectors. During the current fiscal, Department of Economic Affairs (DEA), Ministry of Finance has undertaken various initiatives for enhancing the Economic Growth and ensuring the Fiscal Stability of the economy. The corresponding provisional inflation rates for rural and urban areas are 6.48 percent and 4.81 percent. Consumer prices in India went up 5.69 percent year-on-year in January of 2016, higher than 5.61 percent in December of 2015 and accelerating for the sixth straight month. The present article made an attempt to assess the issues relating to inflation such as relationship between Money supply and inflation, impact of inflation in general and particularly on common man, Measures of Inflation, trends in inflation (CPI) over a period of time and also on current status of inflation in India.