Consumer Price Index (CPI)
- It is an index which measures the weighted average of prices of a basket of consumer goods and services such as transportation, food and medical care.
- It is calculated by measuring price changes for each item in the predetermined basket of goods and services and averaging them.
- It is released by the Central Statistical Organisation (CSO) under the Ministry of Statistics and Program Implementation.
- The base year used to calculate CPI in India is 2011-2012.
- Under the flexible inflation targeting (FIT) framework, RBI aims to contain CPI based inflation within 4 percent with a band of (+/-) 2 percent.
Why in News?
- According to the latest official data, the Consumer Price Index quickened to 6.09% in June, mainly on account of higher prices of food items.
- Retail inflation measure by CPI was 3.18% in June 2019.
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