Inflation: Why RBI should have paid more attention to detergent prices

Operating at magic price points is like running a high-school experiment in "titration," dripping a liquid of known properties into another of unknown concentration and stopping when the color changes

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. 

Such tiny bars of detergent are targeted at less affluent consumers who are often unable to spend a rupee more without having to cut back on something else. To prevent these customers from downgrading to cheaper