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 titled “Deficit Financing, Inflation and Price Control” was published on November 14, 1963 and was authored by K Jayaraman. The author examines the issue of rising prices in the country, using statistics regarding inflationary pressure from 1950-51. Continued budget deficits have been a major cause for rising prices. Government’s policy response in the form of price controls and its consequences have been critically analysed in this article.