{"id":20435,"date":"2024-02-13T02:07:25","date_gmt":"2024-02-12T20:37:25","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=20435"},"modified":"2025-04-06T01:18:47","modified_gmt":"2025-04-05T19:48:47","slug":"retail-inflation-upsc","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/retail-inflation-upsc\/","title":{"rendered":"What is Retail Inflation?"},"content":{"rendered":"<h2>About Retail Inflation<\/h2>\n<ul>\n<li>Retail inflation,\u00a0also known as Consumer Price Index (CPI) inflation,\u00a0tracks the change in\u00a0retail prices of goods and services which households purchase\u00a0for their\u00a0daily consumption.<\/li>\n<li>CPI is\u00a0calculated for a fixed basket of goods and services that may or may not be altered by the government from time to time.<\/li>\n<li>The change in the price index over a period of time is referred to as CPI-based inflation, or retail inflation.<\/li>\n<li>What Does the CPI tell? Following are a few things that the CPI index interprets:\n<ul>\n<li>Cost of living<\/li>\n<li>The\u00a0purchasing power\u00a0of consumers<\/li>\n<li>The\u00a0expensiveness of different articles that consumers buy and services that are availed<\/li>\n<li>Value of the Indian rupee<\/li>\n<\/ul>\n<\/li>\n<li>How is CPI calculated?\n<ul>\n<li>CPI is\u00a0calculated as a percentage. It is a\u00a0comparison of the general\u00a0price level\u00a0in the markets\u00a0in a particular time period from a time frame in the past. This is\u00a0known as the base year.<\/li>\n<li>CPI, therefore, is calculated by referring to a base year, which is a benchmark.\u00a0Currently, the base year is 2012.<\/li>\n<li>The formula\u00a0for calculating the CPI index is:<\/li>\n<li>CPI = (Cost of a Fixed Basket of Goods and Services in the Current Year\/Cost of a Fixed Basket of Goods and Services in the Base Year) * 100<\/li>\n<li>The\u00a0National Statistical Office (NSO), Ministry of Statistics and Programme Implementation (MoSPI), compiles All India as well as state-wise CPI for Rural, Urban, Combined sectors\u00a0and releases the CPI numbers every month.<\/li>\n<\/ul>\n<\/li>\n<li>How is the Consumer Price Index (CPI) Used?\n<ul>\n<li>It is used as a\u00a0macroeconomic indicator of inflation, as a tool by the central bank and government for\u00a0inflation targeting and for\u00a0inspecting price stability, and as a\u00a0deflator in the national accounts.<\/li>\n<li>CPI also\u00a0helps understand the real value of salaries, wages, and pensions, the\u00a0purchasing power of the nation\u2019s currency, and regulating rates.\u00a0<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<hr \/>\n<h3>Q1) What is &#8216;Wholesale Price Index&#8217; (WPI)?<\/h3>\n<p>(WPI) represents the price of goods at a wholesale stage i.e. goods that are sold in bulk and traded between organizations instead of consumers.WPI is used as an important measure of inflation in India. Fiscal and monetary policy changes are greatly influenced by changes in WPI.<\/p>\n<p><strong>Source:<\/strong> <a href=\"https:\/\/www.thehindu.com\/business\/Economy\/retail-inflation-eases-to-51-in-january-a-3-month-low\/article67838256.ece\" target=\"_blank\" rel=\"nofollow noopener\"><u>2024 brings breather on inflation but food prices are still sticky<\/u><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Retail inflation, also known as Consumer Price Index (CPI) inflation, tracks the change in retail prices of goods and services which households purchase for their daily consumption.<\/p>\n","protected":false},"author":5,"featured_media":20436,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":{"0":"post-20435","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-prelims-current-affairs","8":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/20435","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=20435"}],"version-history":[{"count":0,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/20435\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/20436"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=20435"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=20435"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=20435"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}