Retail inflation : Retail inflation at 5-year high of 7.3% in December

Retail inflation : Retail inflation at 5-year high of 7.3% in December

Part of: GS Prelims –Inflation and GS-III- Economy

In news:

• Retail inflation ascended to a five and a half year high of 7.35% 
• Released by the National Statistical Office 
• Retail inflation was only 2.11% in last year 

From Prelims point of view:

National Statistical Commission

• The new NSO as an agency was envisaged firstly by Rangarajan Commission to implement and maintain statistical standards and coordinate statistical activities of Central and State agencies as laid down by the National Statistical Commission (NSC).
• This commission had also recommended setting up of the NSC, headed by a person with a Minister of State-level designation, to serve as a nodal and empowered body for all core statistical activities of the country.
• According to recent order, NSO will be formed with the merger of NSSO and CSO under MoSPI.
• This recent restructuring seems to be a reaction to the resignations tendered by the member and acting Chairman of the NSC earlier this year

What Is the Consumer Price Index (CPI)?

• The Consumer Price Index (CPI) is a measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food and medical care. It is calculated by taking price changes for each item in the predetermined basket of goods and averaging them.
• Changes in the CPI are used to assess price changes associated with the cost of living; 
• the CPI is one of the most frequently used statistics for identifying periods of inflation or deflation.