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Behind the policy and politics around inflation -Roshan Kishore

-Hindustan Times

The Wholesale Price Index (WPI), which acts as a proxy for producer prices, grew 14.23% in November, the highest since April 2012, the earliest period for which WPI data is available under the current series.

Retail inflation in India rose 4.91% in November compared with a year ago. The rise was far from unprecedented. And of the 119 months for which data is available under the latest series of Consumer Price Index (CPI), inflation has been higher than 4.91% in 70 months.

That statistical comfort notwithstanding, there are growing concerns around price rise in the country. The Wholesale Price Index (WPI), which acts as a proxy for producer prices, grew 14.23% in November, the highest since April 2012, the earliest period for which WPI data is available under the current series.

There are valid reasons to be concerned about inflation, an HT analysis shows. What complicates matters even more is the fact that the current spike has come at a time when the economy has just recovered. Here are three charts that explain this in detail.

Please click here to read more.