Indian CPI inflation is a topic of hot discussion and yesterday the MOSPI (Ministry of Statistics and Programme Implementation published the June numbers. It must have led to a little disappointment, as combined inflation has peaked from the last month’s numbers by 50 basis points to 4.81%. Now, in order for us to understand the implications clearly we need to dive down into the details. Not just any detail, but only those which capture the contributions to the individual items/states by weights to the overall number (“weighted inflation”). Only then we will be able to understand the impact clearly and equip ourselves with insights for taking appropriate measures for course correction.
Current Year – CPI Overall
The following is the weighted inflation matrix for the last 12 months for CPI overall. The matrix captures the contribution of individual items in basis points to the overall number.
