Explained: Why inflation is so high in India and where it is headed

It isn't just protein diet and cereals that are becoming expensive despite bumper output the past few years; even personal care products and recreation have surprisingly become very costly

Let us begin with a difficult question lurking in everyone’s mind: What is it that could worsen an already turbid scene where the economy is tanking, jobs are getting lost, incomes are falling, and new investments aren't happening? There could be many answers, but one of them is the spike in prices -- of food, of essential services, and of household items. And that is what is happening in India right now. 

Consumer inflation--defined as the growth in the consumer price index over the previous year--was close to seven per cent in July. Food inflation, in fact, was higher at