3 min read.Updated: 20 Nov 2022, 04:47 PM ISTHimanshu
October’s drop is due to a high base even as local drivers stay strong and this bodes ill for India’s poor
Estimates of inflation released last week may have given the Reserve Bank of India (RBI) some breathing space in its fight to contain inflation. Retail inflation based on the consumer price index (CPI) moderated to 6.77% in October, compared to 7.41% in September. Even inflation based on the wholesale price index (WPI) declined to 8.4% in October, snapping a double-digit inflationary spell that lasted 18 months. These estimates suggest that India’s fight against inflation may be on track. But a close look at the disaggregated data suggests that such euphoria may be misplaced.