Magic Prices Warned of India’s Sticky Inflation, So How Did the RBI Not Notice? - Bloomberg

2022-05-28 06:54:02 By : Mr. Bill Wang

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Easy-to-remember retail prices are important to both budget-conscious consumers and brands. When a 10-rupee detergent starts selling for 12, policy makers are already looking at entrenched inflation.

Photographer: Punit Paranjpe/AFP/Getty Images

If it really wanted to get ahead of the inflation challenge, India’s central bank should have paid more attention to Surf Excel.

The price of the laundry detergent went up by 20% in January. While that’s hardly news when most everyday things are becoming dearer everywhere, the interesting part was the retail price before the change: 10 rupees (13 US cents) for a bar.