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- According to the data released from the Central
Statistics Office (CSO), retail inflation for the month of May has increased to
a seven-month high of 3.05%.
- This is mainly due to costlier food items. As
per the data, inflation in the food basket rose to 1.83% in May, higher than
1.1% in April.
- Retail inflation is based on the Consumer Price
Index (CPI). It reflects changes in the retail prices of specified goods and
services over a time period which are traded by particular consumer group. CPI data
is released monthly by the Central Statistics Office which functions under the
Ministry of Statistics and Programme Implementation.
- There are four types of CPI: a) CPI-IW
(Industrial Worker), b) CPI-UNME (Urban Non-Manual Employees), c) CPI-AL
(Agricultural Labourers) and d) CPI-RL (Rural Labourers)
- RBI has adopted CPI as the key measure for
determining inflation situation of Indian economy, on recommendation of Urjit
Patel Committee.
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