Unprecedented spike in inflation spurs calls for urgent data revision

An unexpected acceleration in India’s inflation in the last two months has reignited debate on data collection practices that ignore changes in the economy and rely on obsolete items for collecting prices.

Consumer prices rose 6.44% in February, breaching the Reserve Bank of India’s target ceiling as well as analysts’ expectations for a second straight month. That has boosted the chances of another rate increase in April.

Economists are worried the RBI’s rate decision would be based on a number that doesn’t fully reflect digitalization of the economy, possibly leading to a policy misstep. This adds to concerns around quality of India’s