CPI declines to 5.66%

  • Recently, India’s retail inflation rate declined to 66%, below the Reserve Bank of India’s (RBI) upper target of 6% in March 2023, primarily due to a decrease in food prices, especially for vegetables.
  • Core inflation, which excludes food and fuel prices, was at 95% in March, down from 6.12% in February.

About Retail Inflation

  • Retail inflation, also known as Consumer Price Index (CPI) inflation, is the rate at which the prices of goods and services that consumers buy for personal use increase over time.
  • It measures the change in the cost of a basket of goods and services that are typically purchased by households, including food, clothing, housing, transportation, and medical care.
  • Four types of CPI are as follows:
    • CPI for Industrial Workers (IW).
    • CPI for Agricultural Labourer (AL).
    • CPI for Rural Labourer (RL).
    • CPI for Urban Non-Manual Employees (UNME).
  • Of these, the first three are compiled by the Labour Bureau in the Ministry of Labour and Employment.
    • Fourth is compiled by the NSO in the Ministry of Statistics and Programme Implementation.
  • Base Year for CPI is 2012.
  • In 2020, the Ministry of Labour and Employment released the new series of Consumer Price Index for Industrial Worker (CPI-IW) with base year 2016.
  • The Monetary Policy Committee (MPC) uses CPI data to control inflation.
  • In April 2014, the RBI adopted the CPI as its key measure of inflation.


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