Inflation Tracker
Monitor India's price stability through CPI and WPI trends. Understand the drivers behind price changes and how they impact the common citizen.
CPI vs WPI: The Benchmark
In India, inflation is primarily measured by two indices: the Consumer Price Index (CPI), which reflects price changes from a consumer's perspective, and the Wholesale Price Index (WPI), which tracks prices at the producer level.
CPI Basket Weights
The Consumer Price Index basket is weighted based on the average urban and rural consumption patterns. Food and beverages carry the highest weight, making inflation in India highly sensitive to agricultural output.
Food & Beverages
Weight: 45.86%
Housing
Weight: 10.07%
Fuel & Light
Weight: 6.84%
Clothing & Footwear
Weight: 6.53%
Miscellaneous
Weight: 28.32%
How it affects you?
Purchasing Power
As prices rise, each rupee buys fewer goods. This effectively reduces your real income and standard of living.
Savings Erosion
If inflation is higher than your bank's interest rate, the real value of your savings actually decreases over time.
UPSC Focus: Headline vs Core Inflation
Headline Inflation
The total inflation in an economy, including commodities such as food and energy prices, which tend to be much more volatile and prone to inflationary spikes.
Core Inflation
Inflation excluding volatile categories like food and energy. This provides a clearer picture of the underlying long-term inflation trend.