Retail inflation spikes to 7-month high of 3.05% in May on costlier food articles

  1. According to the data released from the Central Statistics Office (CSO), retail inflation for the month of May has increased to a seven-month high of 3.05%.
  2. This is mainly due to costlier food items. As per the data, inflation in the food basket rose to 1.83% in May, higher than 1.1% in April.
  3. 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. CPI data is released monthly by the Central Statistics Office which functions under the Ministry of Statistics and Programme Implementation.
  4. There are four types of CPI: a) CPI-IW (Industrial Worker), b) CPI-UNME (Urban Non-Manual Employees), c) CPI-AL (Agricultural Labourers) and d) CPI-RL (Rural Labourers)
  5. RBI has adopted CPI as the key measure for determining inflation situation of Indian economy, on recommendation of Urjit Patel Committee.

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