Consumer Price Index (CPI)

  • January 13, 2021
  • Posted by: OptimizeIAS Team
  • Category: DPN Topics
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Consumer Price Index (CPI)

Subject: Economy

Context: The Consumer Price Index (CPI) rose by 4.59 per cent in December.

Concept:

  • CPI is a measure of retail inflation (WPI measure wholesale inflation) in economy. It is calculated on monthly basis. There is also an annual report with a 1-month lag.
  • CPI -IW – Optimize IAS

Why CPI is important?

  • Tracks inflation in economy.
  • RBI and other estimating agencies study CPI so as to understand the price change of various commodities and keep a tab on inflation.
  • It also gives an idea of cost of living.
Consumer Price Index (CPI) economy