Current Affairs 2023 – Current Affairs for January 2023
In December 2023 the Retail Inflation for industrial workers in India slip to 5.5%.
Retail inflation also known as Consumer Price Index (CPI) inflation is the rate at which the prices of goods and services that consumers buy for personal use increase over time. we are going to discuss the topic on Retails Inflation. What is the reason to come in the news. As you came here to read the blog by seeing the title of the blog that the retail inflation is slip to 5.5% and what is the Significance of the Decline and also know the significance of retail inflation. This topic is very important to aspirants of UPSC and other similar examinations, so stay with the blog.
The Retail Inflation for industrial workers in India slip to 5.5% in the month December 2023.
This news is under trand that due to higher prices of certain food items the Retail inflation in the month of December 2022 for Indian industrial workers rose marginally to 5.50 per cent from 5.41 per cent in November 2022.
In this connation a statement released by labour bureau that the rate of inflation for the month December 2022 stood at 5.50 per cent as compare to 5.41 per cent for the previous month November 2022 and the labour bureau also said that the inflation rate for the month December 2021 was 5.56 per cent.
It is notable that it also stated in the statement that the food inflation in India stood at 4.10 per cent against 4.30 per cent in the previous month and 5.93 per cent during the corresponding month a year ago.
It was also said in the statement that the All-India Consumer Price Index for industrial workers (CPI-IW) for the month of December 2022 decreased by 0.2 points and stood at 132.3 points. which was 132.5 points in November 2022.
As per the statement the change in percentage for one-month it decreased by 0.15 per cent as compare to the index point for the previous month was 0.24 per cent.
The statement also indicates that the maximum downward pressure in the current index came from the primary sector like Food and Beverages group which is responsible the change of 0.52 percentage points to the total change. As per the statement following items are responsible for the fall in the consumer index Cabbage, Cauliflower, Brinjal, Carrot, Onion, Potato, Tomato, Peas, Garlic, Chilies Green, Apple, Orange, Sunflower Oil, Vanaspati Oil and Poultry products etc. However the above mentioned items are responsible for this decrease but the report also said that the following items was also putting upward pressure on the consumer index such as Rice, Wheat, Milk, Fish, Egg, Chilies Dry, Cumin Seed, Turmeric, Tea Leaf, Cooked Meals, Allopathic Medicine, school fee and Tuition fees etc.
According to the report indicates the at the centre level the like Nasik and Lucknow recorded the maximum decrease of 1.9 points each as compare to the Among others areas the decrease recorded between 1 to 1.8. On the other side the Faridabad district of Haryana recorded a maximum increase of 3.3 points followed by Nagpur and Tirunelveli with 3.0 and 2.4 points respectively.
This is for extra information that the Labour Bureau (an office under the Ministry of Labour and Employment) has been compiling the Consumer Price Index for Industrial Workers (CPI-IW) every month from 317 big markets spread over 88 industrially important centres of the country on the basis of retail prices. The index is compiled by 88 centres is treated as All-India Index price and the date is released on the last working day of the succeeding month.
Important Questions to be Asked
What do you mean by Retail Inflation ?
Retail Inflation is the rate at which the prices of goods and services that the consumers buy for personal use increase from time to time.
Retail Inflation is also known as which other name?
Retail Inflation is also known as Consumer Price Index (CPI).
Retail Inflation measures which of changes in the basket of goods and services ?
The retail Inflation measures the change in the cost of a basket of goods and services that are typically purchased by households, including food, clothing, housing, transportation, and medical care.
What do you mean by Core Inflation ?
The Core inflation is the cost of all the commodities purchased by an individual in which excludes the cost of food and fuel prices.
Why recently the news of Retails Inflation is in trend?
Because recently in India the retail inflation rate declined to 5.50%. The retail inflation rate has gone below the Reserve Bank of India’s (RBI) upper target rate of 6% in March 2023.
What is the Significance of the Decline of Retail Inflation?
The Significance of the Decline of Retail Inflation are as under –
01) The decrease in retail inflation is sign of a positive development for the economy.
02) Retail Inflation provides some relief to the consumers who have been dealing with rising prices of the essential goods and services.
03) The Retail Inflation could give an opportunity to RBI to be more flexibility in its monetary policy and going forward with their decisions.
04) The significance of retail inflation give a chance to RBI to think over whether the trend of inflation remain to be same or adjust with policies accordingly.
What do you mean by CPI ?
The CPI (Consumer Price Index) is the price index which measures the overall change in consumer prices based on a representative basket of goods and services over time.
How many types of CPI ?
There are four types of CPI are as follows –
01) CPI for Industrial Workers (IW).
02) CPI for Agricultural Labourer (AL).
03) CPI for Rural Labourer (RL).
04) CPI for Urban Non-Manual Employees (UNME)
Which organization is responsible to compile the CPI data ?
The data of CPI -IW, CPI – AL and CPI – RL are compiled by the Labour Bureau in the Ministry of Labour and Employment and the date of CPI – UNME is compiled by the NSO in the Ministry of Statistics and Programme Implementation.
What is the Base Year to calculate the CPI ?
Year 2012 is taken as the Base Year for CPI calculation but In 2020 the Ministry of Labour and Employment released the new series of Consumer Price Index for Industrial Worker (CPI-IW) with base year 2016.
What is the formula adopted to calculate the CPI ?
The formula adopted to calculate the CPI is as under –
consumer price index in current period = cost of market basket in current period divided by the cost of market basket in base period multiplied by 100.
What is the Need for Monitoring Inflation in the Economy?
01) to create the Price Stability
02) to boost confidence for Consumers as well as Businesses Confidence
03) to adjust the interest rates
04) to increase the International Competitiveness
Some other important topics to read
IMF projected growth rate of Indian Economy Decline to 6.1% in 2023
Economic Survey 2023 – Chapter wise study | Indian Economy