Why is it in the news ?
- As per the official data released, retail inflation continued to slide, easing to a 19-month low of 2.05% in January.
- The food inflation continuing to remain in the negative zone.
More in the news
- Consumer Food Price Index (CFPI) inflation stood at (-)2.17% in January as against (-)2.65% in December.
- The ‘food and beverages’ segment registered a deflation of 1.29% in January as against 1.49% deflation a month ago.
- Inflation for the ‘fuel and light’ category moderated to 2.20 per cent in January from 4.54 per cent a month ago.
- At 2.05%, the overall retail inflation rate is much lower than the Reserve Bank of India’s (RBI’s) inflation projection of 2.8% for January-March quarter.
- The RBI, on February 7 cut policy rate by 25 basis points, had revised down its inflation projections.
- RBI cited low food inflation due to excess supply conditions domestically as well as internationally and larger than anticipated moderation in fuel inflation.
- Experts said headline CPI is expected to stay benign in the coming months and provides room for further rate cut by the RBI.
Concepts
- The Retail Inflationmeasures changes in the price level of a ‘market basket’ of consumer goods and services purchased by households.
- The headline inflation measure demonstrates overall inflation in the economy.
- Conversely, the core inflation measure strips the prices of highly volatile food and fuel components to distinguish the inflation signal from transitory noise.
Source
Indian Express.