The Ministry of Statistics and Programme Implementation (MOSPI) today announced that the retail inflation which is normally tracked by CPI for March 2023 has been 15-months lowest of 5.66%.
Image Source: Ministry of Statistics and Programme Implementation (MOSPI)
The Consumer Price Index (CPI) in India is a measure of the average change in prices of goods and services consumed by households over time. It is a widely used indicator to track inflation, which is an important macroeconomic variable.
The increase in CPI has significant implications for the economy and the general population. It can lead to higher cost of living and reduced purchasing power of households. The government and central bank may take measures to control inflation and stabilize prices.
RBI keenly takes into consideration the CPI rates to decide various monetary policies including the repo rates.
Few days ago, RBI kept the repo rate unchanged to 6.5%, stating that they are expecting the retail inflation to be around 5.2% for FY23-24.
Whatβs your view on the drop in the CPI rate for the year, and what do you anticipate in the coming months? Do share your thoughts