It is commonly perceived that the inflation rates depend heavily on the price fluctuations of seasonal items, especially vegetables and fruits. At several points of time, hue and cry has been observed due to price hike ofonions, potato, tomato, and other vegetables. This paper attempts to analyse the impact of vegetables and fruits on the Consumer Price Indices in rural and urban areas to understand how much these items have played the role of being drivers of retail as well as wholesale inflations.
Price Indices in India, Retail Inflation, Fluctuation Inflation Rates, Drivers of retail inflation