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.