India's inflation indicators (consumer, core, wholesale) are diverging. While consumer inflation is manageable, wholesale is significantly higher. The Reserve Bank of India (RBI) must determine if temporary price shocks, via mechanical, wage, or expectation channels, will diffuse broadly. Despite RBI's credibility, enabling markets to overlook transient spikes, vigilance is crucial. Monitoring product, labor, and commodity markets is vital to prevent isolated pressures becoming widespread inflation.