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Inflation has been a rising concern in every economy. From Affecting what goes into pockets to what is saved, its mark has been of huge importance to citizens. While scrolling through the receding and rising rates of daily needs, we know that in the end, it’s this factor that wins. To measure Inflation there are measures that can be taken into account to calculate the rate of change of prices in the market like CPI and WPI.
CPI: CPI(t) = C(t)/C0*100 CPI(t): Consumer Price Index in the Current Period C(t): Market basket's current-period cost C0: Market basket's base-period cost WPI: (Current Price/ Base Period Price)*100
A country’s Inflation rate helps in determining one’s purchasing power. A rise in the rates of WPI Inflation can indicate higher inflationary pressure and vice versa.
Wholesale Inflation falls Negative this April.
This April, the fall in inflation led to a sigh of relief for Indian citizens with a decrease in prices of Cereals, wheat, poultry, vegetables, fish, minerals, and natural gases, among others. As per the reports, The Wholesale Price Index, for the first time entered a negative territory which was last recorded in 2020.
As per the reports released, Sonal Bandhan who is a known economist at Bank Of Baroda has highlighted that this trend of downward growth will very likely continue due to the global weak momentum by the side of the U.S. and China. The prices of Oil are also weakening which will be of much support to the fuel and power Index.
Retail Inflation falls below the Set Tolerance Limit
As per the data released by the government, India’s Retail Inflation has fallen from 5.66% to 4.7% in the last month. This happened majorly due to less prices of food and oils. The acceptable range of the Reserve Bank of India is between 2-6% for the second month for which the recorded rate is favorable.
The 1114 metropolitan markets and approximately 1181 villages in all states and union territories are used to compile the Consumer Price Index.
Now, with much less inflationary pressure and the decline in Core-Inflation RBI is expected to keep the policy rates unchanged. In the first week of April, in the last meeting of RBI’s Monetary Policy Committee, it was decided to maintain the policy repo rate.
Also, Read Shares of DLF witnessed a boost after the reported profit.
