Inflation expectations: What are these and do they really play a role in India’s economy?
CPI-based inflation, however, offers a year-on-year comparison as an annual figure every month. Hence, a spike in onion prices of, say, ₹10 per kg in November from ₹20 per kg in October may lead to an exaggerated view of how their cost of living has gone up, even though the price difference from the previous November may be very little; this can happen because of seasonal cycles of supply in relation to demand.
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