In a stark difference from whatever the Wholesale Price Inflation guys are smoking, consumer prices have now left the building through the roof. At nearly 11%, the Consumer Price Index (CPI) has inflated substantially more than the “minor” 6.84% in February.
And it’s largely food, which has gone up 13.4% from last year.
As you can see, housing and clothing are also up in double digit inflation zone, while most of the rest remain high.
And it’s in both urban and rural areas, with both numbers going above 11% in Feb.
In the RBI meet on Tuesday, I hope they take a closer look at the CPI and understand the risk of lowering rates too early. That growth is slowing is a positive consequence for inflation, but you have to let the slowing growth bring down inflation in real terms before you start the rate cut process again.
