• According to data released by Central Statistics Office (CSO), the retail inflation for the month of February has increased to 2.57% as against 2.05% in January.
• Retail inflation is based on the Consumer Price Index (CPI).
• It reflects changes in the retail prices of specified goods and services over a time period which are traded by particular consumer group.
There are four types of CPI:
• CPI-IW (Industrial Worker),
• CPI-UNME (Urban Non-Manual Employees),
• CPI-AL (Agricultural Labourers) and
• CPI-RL (Rural Labourers).
Measures taken by the RBI
• RBI has adopted CPI as the key measure for determining inflation situation of Indian economy, on recommendation of Urjit Patel Committee.
• Index of Industrial Production (IIP) decreased to 1.7% in January 2019 compared to 2.4% in December 2018. IIP measures industrial output growth. IIP is a composite indicator that measures changes in the volume of production of a basket of industrial products.
Mains Paper 3: Economy
Prelims level: Index of Industrial Production
Mains level: Highlights of the Index of Industrial Production