Understanding the CPI inflation of India is crucial. As many of the economic metrics are directly dependent on it. Hence, in this note, I plan to tell the story through charts. These charts are not static, they are dynamic. As it enables the readers to drill down to get further insights into not only the inflationary trends but also the ability to see the picture from different angles based on chosen metrics from the dropdown menus.
CPI — Main Category
Here is the screenshot of the trend of the last 10 months of the CPI main category of items.
Key takeaways:- a) Fuel inflation is on a downward trend; b) Food inflation is shown a sharp decline after a peak on Sept 22, and it has a large impact on the overall inflation as its corresponding weight on the general index is 45.9%; c) Housing inflation is on an increasing trend.
CPI — Sub Category
Here is the screenshot of the trend of the last 10 months of the CPI main category of 12 items sorted on weights.
Key takeaways:- a) The key items driving inflation are those having a significant impact on the index — these are: -Housing (4.58%), Cereals (12.08%), and Milk (7.69%). b) Fuel inflation having an overall weight of 6.8% is on a decreasing trend. c) Vegetable inflation, having a 6% contribution to the overall weight has sharply declined from 18.18% to 7.7%. d) These 12 items constitute 77.1% of the overall index and therefore focusing on these items only can help reduce the overall inflation significantly.
The interested reader can deep dive into these items by visiting my page — https://paragkar.com/indian-cpi-inflation/
CPI — Heat Map
The following is the heat map for inflation of the various items since 2014. This gives a birds-eye view and gives deep insights as to how these items have behaved over various time frames as regards inflation.
Key takeaways:- a) Fuel inflation is the highest since 2014; b) Inflation in Cereals had died down, but has picked up recently; c) Inflation in clothing has picked up recently; d) Vegetables are seasonal in nature; d) Transport and communication have heated up significantly. e) The other key item of concern is oil and fact.
CPI — State Inflation
The following in the CPI inflation trends of the various Indian States.
Key takeaways:- a) States which have the largest contribution to the overall index are- Maharastra (7.49%), UP (6.8%), WB (7.71%), and Karnataka (5.59%); b) The States with the highest inflation numbers are Telangana (8.82%), AP (7.93%), WB (7.71%), MP (7.49%) and Maha (7.22%)
The interested reader can deep dive into these states by visiting my page — https://paragkar.com/state-wise-inflation/
I will do a similar note on WPI soon. Hope you find this useful.
PS: Find the list of other relevant articles in the embedded link.
