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Resource centre on India's rural distress
 
 

A flawed calculation of inflation -Arun Kumar

-The Hindu

The current official inflation rate does not correctly measure price rise

Inflation for the last four months has been worryingly high — wholesale price index (WPI) has been above 10% and consumer price index (CPI) crossed the 6% mark in June, which was above the Reserve Bank of India (RBI)’s tolerance band. This is happening at a time when demand has been down, unemployment has been high, many have lost incomes and poverty has aggravated. So, why is there high inflation and does the official data capture the real picture?

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