New Delhi19 minutes ago
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The government on Thursday, September 26, ahead of Diwali, decided to hike the minimum wages for workers in informal sectors such as construction, mining and agriculture. This will come into effect from October 1.
The government says the hike will help workers tackle inflation as the Consumer Price Index (CPI) for industrial workers has risen by 2.40 points.
The government revises wages twice a year
- The government revises the wages paid to workers working in the industrial sector twice a year – in April and October.
- To determine the new wage, the government takes into account the 6-month average increase in the Consumer Price Index and inflation.
The government uses inflation as a source to decide on wages, so it is important to see the retail inflation, wholesale inflation and the average price of a plate of vegetarian food in the country.
How does inflation affect?
Inflation is directly related to purchasing power. For example, if the inflation rate is 6%, then the value of Rs 100 earned will be only Rs 94. Therefore, investment should be made keeping inflation in mind. Otherwise, the value of your money will decrease.
How does inflation increase or decrease?
The rise and fall of inflation depends on the demand and supply of the product. If people have more money, they will buy more things. Buying more things will increase the demand for things and if the supply is not according to the demand, the price of these things will increase.
In this way the market falls prey to inflation. In simple words, excessive flow of money in the market or shortage of things causes inflation. On the other hand, if the demand is less and the supply is more, then inflation will be less.
Inflation is determined by CPI
As a consumer, you and I buy goods from the retail market. The Consumer Price Index (CPI) shows the changes in the prices related to this. CPI measures the average price we pay for goods and services.
Apart from crude oil, commodity prices, manufactured cost, there are many other things which play an important role in determining the retail inflation rate. There are about 300 items on the basis of whose prices the retail inflation rate is decided.
Read this news also…
Veg thali price decreased by 8% in August: LPG cylinder and tomato prices reduced the prices, non-veg thali became 12% cheaper on annual basis
The price of a vegetarian thali in India fell by 8% to Rs 31.2 in August (on an annual basis). Last year in August 2023, the price of a veg thali was Rs 34. Crisil gave this information in its monthly indicator of food plate cost released on Friday (September 6).
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