The analysis of price trends is based on the wholesale commodity price indices published by the office of the Economic Adviser, Department of Currency and Finance, Reserve Bank of India, and as brought out in the monthly issues of the Reserve Bank of India Bulletin. An immediate indicator of the forces of the black market at play is the range of fluctuation of the price spiral. It will be relevant if an analysis is made of the behaviour of the price level in different sectors of the Indian economy since independence, both in respect of wholesale and sectional prices. Time and again deficit financing has been championed on the ground that an inflationary fever in prices helps to generate greater economic activity and larger national product. Development under organised state planning in the Indian situation brought about a growing rate of investment from not only resource mobilisation but also deficit financing and debt servicing.