The Forum of Free Enterprise is a non-political organization founded in 1956 by A. D. Shroff, and has been established to educate public opinion in India on free enterprise and a democratic way of life. The Forum publishes booklets to further its objects. The following booklet is titled “Inflation in India” written by Prof. L. G. Bapat. In the given document the author has put himself to the task of elucidating the concept of inflation. The term inflation itself brings very different images to one’s mind, but the author does the task of disambiguation and bringing the clear meaning and picture of inflation in front of the reader. The author deals with important questions like “why does inflation occur?”. The text throughout its course makes use of the wisdom of Abba Lerner, F. A. Hayek, Irving Fisher, et. al. The author also examines the relationship between taxation and inflation. It is lucidly written and is easy to comprehend.