13th February 2025 (13 Topics)

Copy

1 Feb

3 Feb

4 Feb

5 Feb

6 Feb

7 Feb

8 Feb

10 Feb

11 Feb

12 Feb

13 Feb

14 Feb

Retail Inflation

Context

India’s retail inflation, a key indicator of price changes in the economy, slowed to a five-month low in January 2025. It was recorded at 4.31%, lower than the expected 4.6% and significantly lower than the 5.22% observed in December 2024.

Key Points:

Food Price Inflation: Food inflation, a major component of overall inflation, eased from 39% in December 2024 to 6.02% in January 2025. This reduction was driven by lower vegetable and pulses prices, which saw significant price drops compared to the previous month.
Vegetable Prices: The prices of vegetables increased by 35% in January 2025, but this was much lower than the 26.60% rise in December 2024, thanks to better winter harvests.
Cereal and Pulses: Cereal prices rose by 24%, and pulses saw an increase of 2.59% year-on-year in January 2025, both slightly lower than the previous month's rise.

What is Retail Inflation?

Retail Inflation is measured by tracking the price movements of several commodities being sold across India.
CPI (Consumer Price Index) is a measure used to calculate retail inflation.
It tracks the price changes of a basket of goods and services that households typically buy for everyday living. The CPI helps determine how much the cost of living has changed over a specific period.
The CPI Formula is: (Price of basket in current period / Price of basket in base period) x 100

This formula shows how much prices have increased or decreased compared to a reference period, which is called the base period.
If CPI rises, it indicates inflation (prices have gone up). If CPI falls, it indicates deflation (prices have gone down).

PYQ

Q. Consider the following statements: (2020)

The weightage of food in Consumer Price Index (CPI) is higher than that in Wholesale Price Index (WPI).
The WPI does not capture changes in the prices of services, which CPI does.
Reserve Bank of India has now adopted WPI as its key measure of inflation and to decide on changing the key policy rates.

Which of the statements given above is/are correct?

(a) 1 and 2 only
(b) 2 only
(c) 3 only
(d) 1, 2 and 3

Solution: (a)

India-EFTA Trade Agreement

Economy Trade and Commerce

Budget GIFT

Economy Miscellaneous

Nuclear energy — dangerous concessions on liability

Science & Technology Nuclear Technology

Criminalization of Politics

Polity & Governance Constitutional Provisions

Obscenity Laws in India

Polity & Governance Fundamental Rights

Domestic Workers’ Rights and Legal Protection in India

Polity & Governance Governance

AI Action Summit in Paris

Science & Technology Artificial Intelligence

India-Middle East-Europe Corridor (IMEEC)

International Relations Bilateral relations

Toll Tax and National Highways

Polity & Governance Government Schemes

Asian Elephants' Vocal Communication

Ecology and Environment Biodiversity

Shakti Microprocessor

Science & Technology Science and Technology in India

Russia's Sukhoi Su-57 Fighter Jet Offer to India

Science & Technology Defence

GS Analyst: Daily Current Affairs

13th February 2025 (13 Topics)

Copy

Retail Inflation

Key Points:

What is Retail Inflation?

PYQ

Still Have Questions?

GS Analyst: Daily Current Affairs

Retail Inflation

Key Points:

What is Retail Inflation?

PYQ

Still Have Questions?

User Login

User Register

Forgot Password

Verify Your Mobile Number