Prices up but inflation down? Here’s why

Welcome to the first Just to Clarify of the new year, after a hiatus over the holiday season. We’re looking forward to explaining much, much more of the news to you over 2010, and today we begin with a topic that’s pretty much always in the news: inflation.

It has been puzzling many people that, even as India endured a period of deflation in the last few months of 2009, the prices of food continued to rise. Isn’t that counterintuitive? How will an upcoming measure - of changing the base year - help measure inflation more accurately? Our guest on the show today is Mint’s own Sanjiv Sankaran, Mint’s deputy chief of bureau economy.

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