Inflation Swap - What Are the Basis Risks?

I think that a lot of people probably don't realize that there's an inflation swap, and or if they're aware of it, they probably don't understand how it works. Basis risks are where people a viscerly feel inflation. You feel inflation in things, not as the overall level. I'm happy to pay too high a price if you can hedge that particular thing. Ah, but, ou know that, i think that was also part of the reason it was inflation.