Inflation

Why is it in the news?
  • As per official data released, retail inflation for June reached 3.18%.
More in the news
    • The 3.18% is well within the comfort zone of the Reserve Bank of India.
    • The RBI has been tasked by the government to ensure the rate of price rise remains around 4%.
    • Retail inflation based on Consumer Price Index (CPI) inched up to 3.18% in June, from 3.05% in May, primarily due to firming prices in the food basket.
    • It leaves scope for a rate cut by the central bank to bolster industrial production.
    • The Reserve Bank mainly considers retail inflation while deciding its monetary policy.
    • Inflation:
      (1) The Retail Inflation measures changes in the price level of a 'market basket' of consumer goods and services  purchased by households.
      (2) The headline inflation measure demonstrates overall inflation in the economy.
      (3) 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.




    Posted by Jawwad Kazi on 13th Jul 2019
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