India’s inflation rate has fallen to a six-year low. The RBI now projects inflation to be 2% in the next fiscal year. This is far below recent historical levels of 6% per year. US inflation has also fallen to 3% this year, from a high of 7% in 2021. This is despite a large increase in tariffs. Inflation has one, and only one, culprit. And that is an increase in the quantity of money in circulation, relative to goods produced. If the amount of money grows faster than the quantity of goods, prices go up. That’s it.