📉 Inflation Is Down, But Is Life Really Easier?

India’s headline inflation fell to a 77-month low of 2.1% in June 2025, thanks to a sharp drop in food and fuel prices. But here’s the real question: has this made daily life more affordable?

Not quite.

🛒 While vegetables, pulses, and spices may be cheaper, urban households are still feeling the pinch. Education fees, healthcare costs, and personal care products have become more expensive, with some categories hitting a 15-month high.

The issue isn’t just about prices—it’s about what we measure. The current CPI basket gives nearly 46% weight to food, but only 28-30% to essential household and service expenses, which have a greater impact on urban living today.

🔁 Inflation data must reflect reality, not just cyclical drops in food prices due to seasonality. Without structural reforms or an updated CPI base year (still stuck at 2011-12), we risk misreading the true cost of living.

It’s time we ask: Are we looking at the right numbers?

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