TOP, precious metals accounted for l/3rd of Oct inflation: CEA

The recent spike in Consumer Price Index (CPI)-based inflation is heavily influenced by a select few commodities, Chief Economic (CEA) Adviser V Anantha Nageswaran (pictured) said on Tuesday. Nageswaran said that removing tomato, onion, potato (TOP), gold and silver from the calculation reveals a headline CPI rate of just 4.2 per cent in October.

- ANJALI KUMARI

These items, which together account for a mere 3.4 per cent weight in the CPI basket, are responsible for contributing over one-third ofthe 6.2 per cent inflation rate observed in the month, he said. Speaking at State Bank of India (SBI)'s annual business and economic conclave, the CEA said: "we know that CPI is being very much influenced by a few commodities. If you take out TOP, gold and silver, the headline CPI rate is 4.2 per cent.. the items that constitute a 3.4 per cent weight, together