A closer examination of India’s inflation story

Retail inflation, as measured by the Consumer Price Index (CPI), grew at 4.35% in September 2021. Between May and September, inflation has come down by 195 basis points. One basis point is one hundredth of a percentage point. While that’s reason for cheer, a disaggregated analysis shows that the actual inflation picture is slightly more complicated than what the headline numbers suggest. Here are four charts which explain this.

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