Our headline inflation index is the WPI and that does not, by definition, reflect the consumer price situation. Getting a single representative inflation rate for a large economy with 1.2 billion people, fragmented markets and diverse geography is a formidable challenge. (iv)  A necessary condition for inflation targetting to work is effective monetary transmission.
Banks were better capitalized and had sufficient buffers to continue their lending to the real economy. As a result, the financial sector was able to absorb, rather than amplify the external shock. More recently, we were confronted with the invasion of Ukraine. This is of course predominantly a humanitarian crisis, but also has profound economic and financial effects.