WHY IS EVERYTHING SO EXPENSIVE?

AS INDIA RECOVERS FROM the economic damage caused by the pandemic, it is also fighting a persistent surge in inflation. As measured by the CPI (Consumer Price Index, which includes the cost of food, housing, clothing, transportation, medical care and education, among others), inflation has almost doubled since June 2019, from 3.18 per cent to 6.26 per cent in June 2021. This was the second straight month in which inflation was above the RBI’s (Reserve Bank of India’s) targeted ceiling of 6 per cent, though it eased a bit in July to 5.59 per cent, a three-month low.

Prices are up in every category, from food (specifically pulses and oil) to fuel and lighting.