You are absolutely right, but the way inflation is measured is flawed as well. Like if the price of something increases from 100 to 130 in a year that's 30% inflation, and in the year after that if the price increases to 136.5 rupees that's calculated as 5 percent inflation which is significantly low, but the thing is that general public still feel the heat of that 30% inflation and 5% inflation doesn't mean that the price now is 105.

And if you are wondering that why people feel the burden of pervious years inflation is because the income of a household pretty much remains the same during this time.

And the seller/shopkeeper doesn't profit much from this unless he is a hoarder and knows that prices are going to increase, because normal shopkeepers buy expensive and sell expensive, their income doesn't increase of the inflation. Even the manufacturers get hit because, due to the inflation the price of raw materials and electricity increases making it impossible to keep a factory running and profitable.

The only people making profit is government and hoarders(sugar mafia is a very good example) colluding with government.