Headline inflation may have moderated but it appears there is no respite for consumer, in daily life. Inflation in food articles is nearing double digits at 9.7% for the week ended October 4, more than double the 4.6% it had touched in the week ended August 30. There is a huge refuge in data choice as prices of food articles are up as well, 2.5% over this period. The wholesale price index, meanwhile, has dropped from 12.3% to 11% over the period.
Which of the following, if true, could help in explaining this anomaly?
a. The wholesale price of fruits is up nearly 20% for the week ended October 4 over the corresponding week last year.
b. Food articles are given only a low weightage in the wholesale price index.
c. In the case of consumer price index for rural labourers and agricultural workers, food has a high weightage of over 65% in the index.
d. The rising prices is part seasonal and part because of the recent rains that destroyed large quantities of fruits and vegetables.
e. Whatever the rate of inflation, people cannot do without essential food items.