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%.
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.
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.
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)
RBI has adopted CPI as the key measure for
determining inflation situation of Indian economy, on recommendation of Urjit
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