When a headline says inflation fell, the first question is whether prices fell or simply rose more slowly. India’s Ministry of Statistics and Programme Implementation publishes the Consumer Price Index (CPI) to track changes in retail prices across a basket of goods and services.
Compare the same month a year apart
The annual inflation rate compares the current month’s index with the same month a year earlier. In a made-up example, a move from 100 to 106 is 6% inflation. If the index then rises from 106 to 109.18 a year later, annual inflation falls to 3% even though the index rises again. The index level and its growth rate answer different questions.
Match the headline to the right series
Check the month, base year, and whether the release refers to the combined, rural or urban index. The ministry’s current CPI series uses 2024 as its base. Food inflation is a separate figure, and a household that spends more on a particular item than the basket assumes may experience a different change in its bills.
Check the release before quoting a number
Use the ministry’s CPI series FAQ for definitions and the official CPI data catalogue for the tables. Check whether the figure is provisional and label the comparison period when you cite it.
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