New Delhi14 minutes ago
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About 50% contribution to inflation baskets is food and drink. In March, its inflation had come down from 3.75% to 2.67% on a month-month basis.
India’s retail inflation is expected to be 3.2% in April. Retail inflation figures will be released today. Retail inflation is below 4% from February due to frequent softening of food items prices.
If the estimate is proved correct, it will be the longest series of continuous decrease in inflation in the last 5 years. Earlier, retail inflation was 3.34% in the month of March. It was a 5 -year -7 -month low of inflation.
Retail inflation in March
- About 50% contribution to inflation baskets is food and drink. Its inflation had come down from 3.75% to 2.67% on a month-month basis.
- In March, the rural inflation rate had come down from 3.79% to 3.25%. At the same time, urban inflation had increased from 3.32% to 3.43%.
How does inflation grow?
Increased inflation and the event depends on the demand and supply of the product. If people have more money, then they will buy more things. Buying more things will increase the demand for things and if there is no supply according to the demand, the price of these things will increase.
In this way, the market is in the grip of inflation. Simply put, excessive money in the market or shortage of things causes inflation. On the other hand, if the demand will be reduced and more supply will be reduced.
CPI determines inflation
As a customer, you and we buy goods from the retail market. Consumer Price Index i.e. CPI does the work of showing changes in the prices associated with it. The CPI measures the same for goods and services that we pay for goods and services.
Crude oil, commodity prices, manufactured costs, also have many other things which have an important role in fixing retail inflation. There are about 300 items, based on the prices, the rate of retail inflation is fixed.
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