Five charts that explain the inflation situation in India

Retail inflation, as measured by the Consumer Price Index (CPI) grew at 4.5% on a year-on-year basis in October.

How serious is the inflation problem in India? The answer depends on which indicator one is looking at. Retail inflation, as measured by the Consumer Price Index (CPI) grew at 4.5% on a year-on-year basis in October. The Wholesale Price Index (WPI), on the other hand, grew at 12.5% in this month. What is one to make of these divergent estimates of inflation in India? Here are five charts which put this in perspective.

The Bloomberg Commodity Index – it is a weighted average of prices of energy, grains, industrial and precious metals, cotton and livestock – has increased significantly in the post-pandemic period.(Reuters | Representational image)