Current Context: India’s retail inflation dropped to 4.6% in FY 2024–25, the lowest since 2018–19.

About Retail Inflation

• Retail Inflation refers to the rise in prices of goods/services consumed by households.
• It is measured using the Consumer Price Index (CPI).
• CPI reflects the weighted average price of a basket of essential goods and services.
• Movements in CPI affect purchasing power, interest rates, and monetary policy.

CPI in India

• Calculated by: National Statistical Office (NSO) under Ministry of Statistics and Programme Implementation (MoSPI).
• Base Year: