For Prelims: Retail inflation, Consumer Price Index (CPI), Food Inflation, Consumer Food Price Index (CFPI), Kharif, Rabi, Core Inflation, Rupee Depreciation, Imported Inflation, Foreign Investment, National Statistical Office (NSO), Purchasing Power, CPI for Industrial Workers (CPI-IW), CPI for Agricultural Laborers (CPI-AL), CPI for Rural Labourer (CPI-RL), CPI for Urban Non-Manual Employees (CPI-UNME), Food and Agriculture Organization.
For Mains: Easing of inflation and related concerns, Monetary policy and Inflation management.
Source: BS
Retail inflation, based on the consumer price index (CPI), fell to 5.22% in December 2024 from 5.48% in November 2024, driven by easing food inflation.
Retail inflation in India eased to 5.22% in December 2024, driven by reduced food inflation and stable non-food categories. However, concerns remain due to localized inflation, rupee depreciation, and high global interest rates, which may affect domestic inflation control and foreign investment.
Drishti Mains Question:
Analyze the role of the Consumer Price Index (CPI) in shaping monetary policy and its impact on the Indian economy.
Prelims
Q. Consider the following statements: (2020)
Which of the statements given above is/are correct?
(a) 1 and 2 only
(b) 2 only
(c) 3 only
(d) 1, 2 and 3
Ans: (a)
Q. If the RBI decides to adopt an expansionist monetary policy, which of the following would it not do?(2020)
Select the correct answer using the code given below:
(a) 1 and 2 only
(b) 2 only
(c) 1 and 3 only
(d) 1, 2 and 3
Ans: (b)
Q.Define potential GDP and explain its determinants. What are the factors that have been inhibiting India from realizing its potential GDP? (2020)
Q. Do you agree with the view that steady GDP growth and low inflation have left the Indian economy in good shape? Give reasons in support of your arguments (2019)
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