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Retail inflation picks up to 3.77%
Why in the news ?
- As per the official data released, India’s retail inflation rate slightly picked up to 3.77 per cent in September.
- The rise in inflation is driven by higher food and fuel prices and a depreciating rupee.
More in the news
- Consumer price index (CPI)-based inflation rose from 3.69% in August to 3.77% in September.
- The depreciating rupee and rising crude oil prices and revision in minimum support prices for farm produce are expected to put upward pressure on retail inflation.
- The uneven distribution of monsoon rainfall may limit the growth in kharif output and rural incomes in the coming months.
- While the present inflation trajectory is in line with the RBI’s inflation targeting approach, the likelihood of inflation touching around 5% in 4the quarter of FY19 is high.
- The International Monetary Fund (IMF) called for further tightening of monetary policy in India as inflation was expected to pick up.
Consumer Price Index (CPI)
- The Consumer Price Index (CPI) measures changes in the price level of a 'market basket' of consumer goods and services purchased by households.
- The CPI is a statistical estimate constructed using the prices of a sample of representative items whose prices are collected periodically.
- The calculation involved in CPI is done thorough and various categories and sub category on consumption items basis of consumers like urban and rural.
- The overall index of price is calculated mostly by national statistical agencies.
Source
LiveMint.