India's Retail Inflation

India's Retail Inflation: As per the recent PIB report, the India's Retail Inflation fell to 4.6% in FY 2024–25, the lowest since 2018–19, as measured by the Consumer Price Index (CPI).

• About: Retail inflation eased for the third consecutive year, from 6.7% in 2022–23, to 5.4% in 2023–24, and 4.6% in 2024–25. Key drivers included enhanced buffer stocks, subsidised retail sales of staples, and periodic market releases.
• About: Consumer Price Index (CPI) is a major indicator to measure changes in retail price levels over time. It reflects the cost of a fixed basket of goods and services such as food, clothing, housing, and fuel.

o CPI is compiled by the NSO under the Ministry of Statistics and Programme Implementation, using base year 2012.

o CPI tracks price changes by comparing the current cost of the fixed basket to its previous cost. When prices rise, CPI increases (inflation); when prices fall, CPI declines (deflation).