New Delhi14 minutes ago
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Retail inflation in February may be lower than in January. It can come below 4% due to the decrease in the price of all category items, especially food items, which is within the target of the Reserve Bank. The statistics ministry will release inflation figures at 4 pm today.
Retail inflation came to a 5-month low of 4.31% in January due to food and drink items cheap. Inflation was at 3.65% in August. Earlier, inflation was 5.22% in December. About 50% contribution to inflation baskets is food and drink.
Vegetable prices will remain low till June
Bank of Baroda Chief Economist Madan Sabnavis said- retail inflation may come down to 4.1% in February. Prices are decreasing in every field. The wholesale price of vegetables has declined. Most of the prices of tomatoes and potatoes are reduced. This situation is likely to remain until June.
A survey of Reuters conducted between 45 economists between March 4 and March 10 estimated that retail inflation could come down to 3.98% in February.
How does inflation affect?
Inflation is directly related to Purchasing Power. For example, if the inflation rate is 6%, the price of 100 rupees earned will be only 94 rupees. Therefore, in view of inflation, one should invest. Otherwise the value of your money will be reduced.
How does inflation grow?
Increased inflation and the event depends on the demand and supply of the product. If people have more money, then they will buy more things. Buying more things will increase the demand for things and if there is no supply according to the demand, the price of these things will increase.
In this way, the market is in the grip of inflation. Simply put, excessive money in the market or shortage of things causes inflation. On the other hand, if the demand will be reduced and more supply will be reduced.
CPI determines inflation
As a customer, you and we buy goods from the retail market. Consumer Price Index i.e. CPI does the work of showing changes in the prices associated with it. The CPI measures the same for goods and services that we pay for goods and services.
Crude oil, commodity prices, manufactured costs, also have many other things which have an important role in fixing retail inflation. There are about 300 items, based on the prices, the rate of retail inflation is fixed.
