Retail inflation declines from 5.1% to 3.5% in July '24
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Retail inflation declines from 5.1% to 3.5% in July
India’s inflation declined to a 59-month low of 3.5% in July compared with 5.1% in the previous quarter according to data released on August 12.
Consumer inflation had touched 7.4% in July 2023
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Tomato in my area have came down from Rs 80 per kg to Rs 40 per kg 😉 I Think Aunty Counts this in her calculations
But when I go to the store to buy groceries, cheapest rice is 50/kg, toor dal is almost 200/kg, sugar, wheat, atta are at all time highs. They must be using cherry picked prices or using Bharat Rice, Atta, Dal for their CPI calculations.
Any index is highly averaged out.
For example they take simple average of rural and urban inflation which is not accurate. Similarly they take simple average of all states, rather than a weighted average.
They have mentioned that fresh produce is significantly less, but i think last year tomato was an anomaly (200 a kg), even though it has risen but not that high.
To anyone looking at index to gauge personal economy, its unreliable. Everyone needs to create their own index because there are things not used by us but included here and vice versa.
Everybody's salary will be reduced to half. Inflation has gone down from 7.5% to 3.5% 
Can someone help me understand how this is calculated?
Also, is it calculated based on the real life economy status of any common man's average salary.
Nope, it has no involvement of income component.
They have a list of some items (1000+)
They take their prices last year same month and this year. Then compare and calculate the inflation rate. Every item has different weightage in the index.
Not that complicated.
How much of this retail data we can beleive in India, where everything has gaps xDDD