Glossary
Consumer price index
M7.03 · M7.07Also called CPI, consumer price inflation.
The index of prices paid by households, and the measure the Indian central bank targets.
Its composition determines its behaviour. Food carries a large weight in the Indian index, which makes the headline number volatile and sensitive to the monsoon in a way that developed-market indices are not.
That volatility is why the underlying measure exists, and why monetary policy commentary distinguishes the two so carefully.
Read the components, not only the headline.