UPSC Articles
Retail inflation nears 7%
Part of: Prelims and GS III – Economy
Context: Retail inflation accelerated sharply to 6.95% in March, the fastest pace of price gains in almost a year and a half, and marked the third straight month when inflation exceeded the Reserve Bank of India’s tolerance threshold of 6%.
What is retail inflation?
- Retail inflation tracked by the Consumer Price Index (CPI) measures the changes in prices from a retail buyer’s perspective.
- Wholesale inflation, which is tracked by the Wholesale Price Index (WPI), measures inflation at the level of producers.
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.
News Source: TH
