GST effect: How retail inflation rate changed over the last 3 years

The consumer price index-based inflation rate is dependent on food prices, even as GST is levied only on packaged items. 

However, inflation in some items did get impacted by GST. For instance, the Council raised the cess on cigarettes by up to Rs 792 per 1,000 sticks just 18 days after the new indirect tax system was rolled out. 

The inflation rate in cigarettes hit double digits during July-March of FY18, but came down in the next two years. Here’s a