They say in politics, people have short memories. But not when it comes to inflation. Inflation or the consistent increase in the general price level occupies a central place in the collective Indian psyche and is synonymous with economic hardships. Excess demand, which could be caused by several factors, leads to a spike in prices. The spike, in turn, triggers off a chain of events, ultimately resulting in reduced purchasing power, rendering the economy poorer. Perceived as a form of tax imposed without legislation, inflation has severe political, social and economic ramifications.