Business Environment, 4th Edition by Pearson

286 | Chapter 10

Within ‘transport and communication’, on an average,

services components are witnessing higher inflation than

goods. However, volatility is more for goods than for

services (Figure 5). Analysis of CPI–IW data indicates that

inflation of ‘telephone charges’ has remained quite stable

over the years (Figure 6). Inflation for ‘bus fare’ and

‘auto rickshaw fare’ remained above 6 per cent between

FY 2009–10 to 2014–15 mainly due to high oil prices.

The fall in inflation of ‘bus fare’ and ‘auto rickshaw fare’

since 2014–15 onwards can be attributed to moderation

in crude oil prices and deregulation of diesel prices in

October 2014. The ...