Analysis: Why lower inflation still feels expensive

A SLOWDOWN in inflation may offer some statistical relief to the government, but prices of everyday essentials remain substantially higher than they were two years ago. The apparent contradiction lies in the difference between what inflation measures and what consumers experience when they enter the market. Headline inflation measures how quickly the overall price basket is changing. It does not show how far the general price level has already risen. The official measure is based on prices collected from different markets and cities and combined into urban, rural and national indices.…