• UGI USER
  • May 14, 2024
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APRIL SAW 4-MONTH HIGH FOOD INFLATION IN INDIA, IMPACTING CONSUMERS

Why in the news?

April 2024: Indian food inflation hits four-month high at 8.7%. Rural areas affected most. Overall inflation is stable at 4.83%.

About Consumer Food Price Inflation (CFPI):

  • Consumer Food Price Inflation (CFPI) focuses solely on food price changes in a consumer’s basket.
  • It measures the rate of increase in food prices over time for the average household.
  • CFPI is part of the broader Consumer Price Index (CPI), with the RBI using CPI-Combined (CPI-C).
  • It tracks price changes of common food items like cereals, vegetables, fruits, dairy, meat, and staples.
source:scribd
Understanding Consumer Price Index:

  • CPI, or retail inflation, measures the rise in prices of goods and services for personal use.
  • It tracks a basket of household-purchased items like food, clothing, housing, transport, and medical care.
  • Four CPI types include:CPI for Industrial Workers, Agricultural Labourer, Rural Labourer, and Urban Non-Manual Employees.
  • The first three are compiled by the Labour Bureau, while the fourth is compiled by the National Statistical Office.

Associated Article:

https://universalinstitutions.com/inflation/