• UGI USER
  • Jul 11, 2024
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RETAIL INFLATION FOR INDUSTRIAL WORKERS MODERATES IN MAY 2024

Why in the news?

  • Retail inflation for industrial workers in India decreased to 3.86% in May 2024 from 4.42% in May 2023.
  • The Consumer Price Index-Industrial Workers (CPI-IW) also showed a slight decline from 3.87% in April 2024 to 3.86% in May 2024.
Source: CEIC

Key Points:

  • Decrease in Year-on-Year Inflation: May 2024 recorded a lower year-on-year inflation rate of 3.86%, down from 4.42% in May 2023.
  • Continued Moderation: The latest figures indicate a steady moderation in inflationary pressures for industrial workers compared to the previous year’s levels.
Understanding Consumer Price Index (CPI):

  • Measures changes in the price level of a basket of consumer goods and services purchased by households.
  • Calculated by comparing periodic price data of a sample of representative items.

Calculation Formula:

  • CPI = (Cost of market basket in given year / Cost of market basket in base year) x 100
  • Assesses price changes by comparing current prices with those of the same period in the previous year.

Types of CPI:

  • CPI for Industrial Workers (CPI-IW): Measures price changes for goods and services used by industrial workers across sectors like factories, mines, and transport.
  • CPI for Agricultural Labourers (CPI-AL): Determines changes in prices affecting minimum wages for agricultural labour in different states.
  • CPI for Rural Labourer (CPI-RL): Compiles data on price changes affecting rural labourers.
  • CPI (Urban Non-Manual Employees) (CPI-UNME): Compiled by the National Statistical Office to track price changes for urban non-manual employees

Associated Article:

https://universalinstitutions.com/concerns-raised-over-delay-in-publishing-consumer-price-index-data/