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Deepak Mohanty, Executive Director of the Reserve Bank of India, discusses inflation measurement challenges in India. He notes inflation is a sustained price level increase eroding purchasing power, raising living costs, and disproportionately affecting the poor. India uses five primary inflation measures: Wholesale Price Index (WPI) and four Consumer Price Indices (CPIs), plus GDP deflator and Private Final Consumption Expenditure (PFCE) deflator. WPI serves as the headline measure due to high frequency and broad coverage but excludes services, now comprising 65% of GDP. Key divergence between WPI and CPI arises from differing weights: food accounts for 46-69% of CPIs versus 27% of WPI, while fuel weighs 14.2% in WPI versus 5.5-8.4% in CPIs. Services price inflation impacts CPIs more significantly. Granger causality tests show CPIs lag WPI by one month at trend levels, with a long-run cointegrating relationship. Conceptual issues include widening divergence, WPI's reduced representativeness due to services' growing share, and outdated base periods failing to capture structural economic changes. The speech highlights the need for updated measures amid current double-digit inflation and proposed reforms like a more representative WPI and broad-based CPIs.