New Delhi26 minutes ago
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The RBI aims to keep inflation within a range of 4% ± 2%.
Retail inflation in August is expected to increase slightly from 1.6% of July to 2.2%. The reason for this is a slight increase in the prices of some food items.
Official figures of retail inflation will be released today. The Reserve Bank of India i.e., RBI aims to keep inflation within a range of 4% ± 2%.
The price of food items was reduced in July
About 50% contribution to inflation baskets is food and drink. Its month-by-month inflation has come down from 1.06% to minus 1.76%.
In June, the rural inflation rate has come down from 1.72% to 1.18%. At the same time, urban inflation has come down from 2.56% to 2.05%.
RBI reduced inflation estimate
In the meeting of the RBI Monkey Policy Committee held from August 4 to 6, the estimate of inflation for FY 2025-26 was reduced from 3.7% to 3.1%.
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.
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