Understanding the inflation numbers | Number Theory

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October’s retail inflation number is a record low, just 0.25%, in the current Consumer Price Index (CPI) series. October is also the ninth consecutive month in which headline inflation has stayed below the 4% target of the Reserve Bank of India. What should one make of the latest inflation number? What does it tell us about the Indian economy and policy direction going ahead? Here are three charts which summarise the situation.

October is the ninth consecutive month in which headline inflation has stayed below the 4% target of RBI. (Bloomberg)

Understanding the inflation numbers

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