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Retail inflation eases
Why is it in the news?
- Retail inflation based on the Consumer Price Index slowed to 6.58% in February 2020.
- The industrial production growth as measured in the Index of Industrial Production (IIP) quickened to 2% in January.
More in the news
- Reason behind the easing:
(1) Retail inflation slowed mainly due to easing food prices.
(2) Inflation in the food basket was 10.81% February 2020, lower from 13.63% in the previous month.
- The government has mandated the central bank to keep inflation at 4% with a margin of two percentage points on either side.
- Retail Inflation:
(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) Conversely, 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.