The Consumer Price Index (CP

The CPI basket, based on the 2012 base year framework, assigns the following weights to major groups: Food and Beverages: 45.86% (the single largest component, reflecting the high share of food in Indian household spending); Housing: 10.07%; Fuel and Light: 6.84%; Clothing and Footwear: 6.53%; Miscellaneous (including health, education, transport): 28.32% (residual). The dominance of food (45.86%) means that food price shocks  particularly in vegetables, pulses, and cereals  disproportionately drive headline CPI inflation in India. This is why the RBI’s Monetary Policy Committee pays close attention to food inflation, and why a spike in onion or tomato prices can push CPI significantly above the 4% target even when core (non-food, non-fuel) inflation is stable.