India is a developing country. Rise of prices is inevitable in a developing economy. It is mainly attributed to inflation. Limited inflation contributes to economic growth. But for some time now, the level of inflation has gone far beyond controllable limits. This has caused harassment to the common man, especially the poorer sections. Over population are major factors for rise in prices. Steps should be taken to increase production in all sectors. Continuous price hikes may lead to anarchy – a complete failure of all government and official systems. Effective steps must be taken to check rise in prices and to maintain a stable economy.