• The inflation data in India is widely believed to be misleading as it fails to capture the actual market scenario.
• One of the main reasons for this is the methodology used to calculate inflation, which relies heavily on a fixed basket of goods and services that may not accurately represent the changing consumption patterns of individuals and households.
• The official CPI inflation data also does not consider several important factors that impact the cost of living, such as changes in house prices, healthcare, education, and transportation costs.
• The government's policy of subsidizing various essential goods and services and keeping their prices artificially low also contributes to the inflation data underestimating the overall cost increases.
• This misleading data can have a significant impact on the common people, who may not be able to afford basic necessities despite the official inflation numbers remaining low.
• This can cause dissatisfaction with the government's economic policies and, in extreme cases, can lead to civil unrest and protests.

In summary, while the official inflation data in India may indicate lower inflation, the common people can feel the pinch in their everyday lives due to the various factors that are not captured by the current methodology.