RETAIL INFLATION Syllabus GS Paper 3 - Economy)

News-CRUX-10     12th December 2023        
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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.