Undergraduate Macroeconomy

Inflation Data and the Consumer Price Index

6 min read

What CPI measures, why food weights matter, and how to read a monthly print.

CPI is a weighted basket. Food still dominates the Indian index, so a vegetable shock can move headline inflation without a change in core.

Lesson objectives

  • Read headline versus core CPI.
  • See why weights, not just price changes, drive the print.

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