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Inflation

About Inflation

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What is Inflation

Inflation can be defined as a persistent rise in the general price of goods and services of common or daily use — such as clothing, food, fuel, transport, etc — which results in an increase in the cost of living.
 
Inflation is the measure of change in average price of services and commodities, done at regular intervals. It indicates a decrease in the purchasing power of a unit of a nation’s currency as the products and services get more expensive. Basically, inflation is the difference between aggregate demand and aggregate supply of goods and services. When aggregate demand exceeds the supply of goods at current prices, there is a rise in the price level.
 
A certain level of inflation is required in the economy to ensure that expenditure is promoted and money hoarding through savings is discouraged.
 
How is inflation measured?
 
In India, there are two main sets of inflation indices to measure changes in price levels — Consumer Price Index (CPI) and Wholesale Price Index (WPI). These indices measure changes at the retail and wholesale price levels, respectively. CPI tracks any shift in retail prices of essential and daily goods and services consumed by households across the country. In short, it captures changes in price level at the consumer level.
 
WPI, on the other hand, is the average change in the price of commodities at the wholesale level. It considers the price of goods traded among corporations, not goods purchased by consumers. The aim of WPI is to monitor price drifts that reflect demand and supply in manufacturing, industry and construction. 
 

Latest Updates on Inflation

Developments such as Covid-induced lockdowns and the Russia-Ukraine war have also played a crucial role in keeping the inflation rate elevated

Updated On: 19 Apr 2023 | 4:01 PM IST

Food inflation, which accounts for nearly half of the overall consumer price basket, is expected to have moderated due to falling vegetable prices, offset in part by surging cereal prices

Updated On: 10 Apr 2023 | 12:16 PM IST

CLOSING BELL: Bajaj Finance, Asian Paints, IndusInd Bank, ICICI Bank, Nestle India, HUL, Reliance Industries, HDFC Bank, Axis Bank, and SBI were the top laggards on the Sensex index

Updated On: 21 Jun 2023 | 12:19 PM IST

As the inflation rate declines, India has paused its interest rate hikes and there is optimism in the air that we have crossed the cyclical hump of a slowdown and should enjoy strong growth

Updated On: 25 Aug 2023 | 3:53 PM IST

The quantity of crude that India imported was 6 per cent lower in 2021-22 at 212 million tonnes compared to 2018-19

Updated On: 09 Apr 2023 | 10:50 PM IST

Inflation remains a worry in the world's fifth-largest economy but, at the moment, no risk is seen for financial sector stability

Updated On: 14 Apr 2023 | 5:42 PM IST

The Rajasthan government will organise camps in urban wards and villages from April 24 to highlight its public welfare and inflation relief schemes, it said in a statement on Saturday

Updated On: 08 Apr 2023 | 10:03 PM IST

The survey showed that household spending was buoyant on the back of higher essential and non-essential spending

Updated On: 06 Apr 2023 | 11:22 PM IST

Forecasts ranged from 5.40% to 6.40%, with a quarter of survey respondents predicting inflation above 6.00%. It was 6.52% in January and spent most of last year above 6.00%

Updated On: 06 Apr 2023 | 7:37 PM IST

The RBI has not used the word stickiness in its policy statement while characterising core inflation, but instead used "unyielding core inflation"

Updated On: 06 Apr 2023 | 10:44 PM IST

Finance Minister Nirmala Sitharaman welcomes RBI decision, says it has taken a 'good call'

Updated On: 06 Apr 2023 | 10:50 PM IST

The RBI has paused because it wants to evaluate the cumulative impact of the past rate hikes

Updated On: 06 Apr 2023 | 10:51 PM IST

Das said RBI is keen to assess the cumulative impact of the rate actions done till now

Updated On: 06 Apr 2023 | 1:36 PM IST

Volatility in global financial market has potential upsides for imported inflation, says committee

Updated On: 06 Apr 2023 | 12:42 PM IST

For the June quarter, the retail inflation is expected to average 5.1%, and rise to 5.4% each in the September and December quarter

Updated On: 06 Apr 2023 | 12:23 PM IST

RBI governor makes it clear that if required, MPC could hike rates in future meetings

Updated On: 06 Apr 2023 | 11:54 AM IST

With the US and Indonesian central banks seen approaching the end of their respective hiking cycles, inflows looking for higher carry returns are likely to keep increasing in the second quarter

Updated On: 06 Apr 2023 | 8:56 AM IST

Policy decisions this week from some of the Reserve Bank of India's global peers offer a good reason for the split

Updated On: 06 Apr 2023 | 6:56 AM IST

Dragged down by a sharp slump in the fourth quarter, world trade volume grew by 2.7 per cent, "a smaller-than-expected increase"

Updated On: 06 Apr 2023 | 6:54 AM IST

Retail inflation rose 6.44% year-on-year in February, easing from 6.52% in January but has remained above the RBI's mandated target range of 2%-6% for 10 out of the last 12 readings

Updated On: 06 Apr 2023 | 6:32 AM IST