RETAIL INFLATION Syllabus GS Paper 3 - Economy)

Context: Recently, India has witnessed a decline in retail inflation, dropping from an average of 7.1% in April-October 2022 to 5.4% in the corresponding period of 2023.Inflation

• About: Inflation may be defined as a sustained rise in the general level of prices brought about by high rates of expansion in aggregate money supply over a period of time.
• Measured By: Ministry of Statistics and Programme Implementation
• Inflation tracks how the prices of a collection of goods and services change on average as time passes.
• Two main sets of inflation indices: The Wholesale Price Index (WPI) and the Consumer Price Index (CPI).
• Rural, Urban Inflation: Inflation faced by rural consumers eased from 5.33% in September to 5.1%, but urban households saw a fractional increase in inflation at 4.65%.
• Retail Inflation

oAbout: It is also known as Consumer Price Index (CPI) inflation, which is the speed at which prices of items people purchase for their personal needs go up over a period.

oIt checks how much the cost changes for a set of items that families usually get, like food, clothes, homes, transport, and medical help.