Prices and Inflation

  • Inflation Trends
    • Inflation witnessing moderation since 2014.
    • Consumer Price Index (CPI) inflation increased from 3.7 per cent in 2018-19 (April to December, 2018) to 4.1 per cent in 2019-20 (April to December, 2019).
    • WPI inflation fell from 4.7 per cent in 2018-19 (April to December, 2018) to 1.5 per cent during 2019-20 (April to December, 2019).
  • Drivers of CPI - Combined (C) inflation
    • During 2018-19, the major driver was the miscellaneous group
    • During 2019-20 (April-December), food and beverages was the main contributor.
    • Among food and beverages, inflation in vegetables and pulses was particularly high due to low base effect and production side disruptions like untimely rain.
  • Cob-web Phenomenon ....
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