Short Article
25-11-2024 | 15:33 PM
Retail Inflation
According to the National Statistical Office (NSO), the retail inflation rate in India surged to a 14-month high of 6.21% in October, driven by a notable increase in the prices of essential food items.
About Retail Inflation
- Retail inflation refers to the rate at which the general price level of goods and services bought by households increases over a specific period.
- In India, retail inflation is measured by the Consumer Price Index (CPI), which tracks the changes in the prices of a basket of goods and services typically consumed by urban and rural households.
- An imbalance in supply and demand, disruption in supplies, or expectations of inflation can cause inflation.
Consumer Price Index (CPI)
- The Consumer Price Index (CPI) in India is a measure of average price changes for goods and services.
- The National Statistical Office (NSO) calculates it separately for urban and rural areas and combines them to get the overall CPI.
- This index is important for understanding inflation, informing policy decisions, and adjusting wages and pensions.
Steps Taken by the RBI
- Monetary Policy Adjustments: The RBI may consider tightening monetary policy by raising the repo rate to curb inflationary pressures.
- Supply Chain Measures: The government intervenes to streamline supply chains and reduce disruptions.
