According to official figures released on Monday, retail inflation decreased to 4.87 percent in October from 5.02 percent in September. In September, the retail inflation rate based on the Consumer Price Index fell to a three-month low of 5.02 percent. The Monetary Policy Committee (MPC) of the Reserve Bank moderated its forecast for CPI inflation from 6.7% in 2022–2023 to 5.4% in 2023–24 during its October meeting.
The governor of the Reserve Bank of India, Shaktikanta Das, has declared that “the fight against inflation is not over yet” and that the goal of the central bank is to maintain inflation at 4% rather than between 2-6%. The RBI has given a mandate by the government to guarantee that the CPI inflation rate stays at 4%, with a margin of error of 2%. When determining its bi-monthly monetary policy, the central bank primarily takes retail inflation into account. According to the government-shared statistics, food inflation increased by 6.61% in October compared to 6.56% in September. Food inflation makes up about half of the total consumer price basket.
How Can I Determine India’s retail Inflation Rate?
In India, the consumer price index (CPI) and the wholesale price index (WPI) the two indices used to calculate inflation. These two track monthly inflation while accounting for variations in the methods used to determine changes in the cost of goods and services. The research assists the government and Reserve Bank of India (RBI) in monitoring inflation by helping them comprehend how market prices fluctuate.
The Consumer Price Index, or CPI for short, examines how retail prices for 260 items have increased throughout the course of the economy. The retail inflation based on the CPI takes into account changes in the prices at which consumers purchase items. The Ministry of Labor and the Ministry of Statistics and Program Implementation gather the data independently.
The Wholesale Price Index, or WPI, examines the inflation of only products throughout a range of 697 categories. The change in prices at which customers purchase items at a wholesale price or in bulk from factories, mandis, etc. taken into account by the WPI-based wholesale inflation.
Also Read:- Rain Threatens ICC World Cup 2023: Impact on India
