Consumer Price Index (CPI) for March 2023 : 5.66%, lowest in 15 months 😲

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.

What’s 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 :point_down:

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Headline Inflation can go up after the recent breakout in OIL after the unexpected and significant production cut announced by OPEC countries.

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Can you please shed a light on how closely the core inflation and headline inflation is interrelated?

So, if the headline inflation will go up owning to the increase in the Oil prices, CPI for the next month in US will be higher as well?

Also fyi, US just announced the CPI for March fell down to 5%.