Inflation, in the context of constant price-level growth, is one of the most significant economic problems in many countries, particularly in developed countries putting their impact over production and asset costs. As financial statements are held on historical cost basis, they do not consider the effects of increasing asset and production costs. This may often result in overstated income, under-priced cash, deceptive market image etc. Thus, the financial statements prepared under historical accounting are usually proven to be statements of historical evidence and do not represent actual market importance. This does not show the True Market image to accounting record users, and their demand adds to the need for inflation accounting. This study is examined to relationship between inflation accounting and Performance measurement of the company by taking the Views of 150 Respondents, being the Manager, Accountants, Chartered Accountants and Accounting department personals regarding the impact of the inflation accounting on company’s performance measurement. For this purpose, sample of 5 companies SAIL, Tata steel, Bhushan steel, JSW steel, Jindal steel is gathered by using close ended structured questionnaire. The data gathered is analysed with Statistical tools like Correlation, Multiple regression with ANOVA analysis to find out the Predictors of the Performance in the company and the impact of the use of inflation accounting   using SPSS software. The findings of the study present the relationship between inflation accounting and performance measurement and also the way it can be helpful for growth of the companies.

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Keywords: Inflation, Inflation Accounting, Steel Companies, Correlation, Linear Regression.