Inflation and how to check it

Inflation is caused by mismatch in the money supply in the economy.
Money supply is determined by

RBI manages money supply through its Monetary Policy Framework

http://www.thehindubusinessline.com/economy/govt-announces-details-of-new-insurance-pension-schemes/article6950744.ece


RBI can follow tight monetary policy to control the money supply in the economy by

• Raising LAF or repo rate (now 7.75%)
• raising CRR (now 4%)
• raising SLR (now 23%)
• raising Bank rate
• Open Market Operations
• Qualitative measures

By Govt through fiscal Policy

http://www.thehindu.com/business/Economy/india-overhauls-monetary-policy-using-inflation-targets/article6951461.ece