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Retail inflation
Why is it in the news?
- India's Retail inflation for the month of October breached RBI's medium-term target of 4% for the first time since July 2018.
- The retail inflation touched 4.62%- a 16 month high due to higher food prices.
- RBI had predicted that food prices are likely to moderate as winter supplies enter the market.
More in the news
- Consumer Food price inflation, which amounts to half of the inflation basket, increased to 7.89 % compared to 5.1% in the previous month.
- Core inflation which excludes energy and food items slowed to 94-month low of 3.47 % in comparison to 4% a month ago.
- Pulses inflation shot up to 11.72% from 8.4% MoM and vegetable inflation jumped to 26% from 11.4% MoM.
- Concepts:
(1) The Retail Inflationmeasures 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) The core inflation measure strips the prices of highly volatile food and fuel components to distinguish the inflation signal from transitory noise.
Source
The Hindu.