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Inflation

About Inflation

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What is Inflation

Inflation can be defined as a persistent rise in the general price of goods and services of common or daily use — such as clothing, food, fuel, transport, etc — which results in an increase in the cost of living.
 
Inflation is the measure of change in average price of services and commodities, done at regular intervals. It indicates a decrease in the purchasing power of a unit of a nation’s currency as the products and services get more expensive. Basically, inflation is the difference between aggregate demand and aggregate supply of goods and services. When aggregate demand exceeds the supply of goods at current prices, there is a rise in the price level.
 
A certain level of inflation is required in the economy to ensure that expenditure is promoted and money hoarding through savings is discouraged.
 
How is inflation measured?
 
In India, there are two main sets of inflation indices to measure changes in price levels — Consumer Price Index (CPI) and Wholesale Price Index (WPI). These indices measure changes at the retail and wholesale price levels, respectively. CPI tracks any shift in retail prices of essential and daily goods and services consumed by households across the country. In short, it captures changes in price level at the consumer level.
 
WPI, on the other hand, is the average change in the price of commodities at the wholesale level. It considers the price of goods traded among corporations, not goods purchased by consumers. The aim of WPI is to monitor price drifts that reflect demand and supply in manufacturing, industry and construction. 
 

Latest Updates on Inflation

All about the Consumer Price Index: How India tracks retail inflation

CPI tracks retail price changes across India; January 2026 inflation data shifts to a new 2024 base year reflecting updated spending patterns

Updated On: 11 Feb 2026 | 11:42 PM IST

Retail inflation: A brief history before new data series launch on Thursday

India's retail inflation gauge has evolved from fragmented worker-specific indices to a unified CPI framework that now anchors monetary policy and welfare decisions

Updated On: 11 Feb 2026 | 11:37 PM IST

Overnight swap rates suggest RBI pause, hint at possible rate hike

The move comes in the backdrop of RBI raising its immediate GDP growth and inflation forecasts

Updated On: 11 Feb 2026 | 3:00 PM IST

January retail inflation likely to hit 2.4-3%: Business Standard poll

The old-weight estimates place January CPI inflation at 2.5 per cent- 2.6 per cent, while the new-weight estimates span 2.45 per cent to 3.2 per cent

Updated On: 10 Feb 2026 | 11:04 PM IST

CPI base revision reflects both methodological rigour, practical relevance

MoSPI's revised CPI modernises price collection, updates weights and aligns with global standards, reshaping how inflation trends are measured and interpreted

Updated On: 09 Feb 2026 | 9:51 PM IST

Gold holds the ground as traders track US inflation data: Analysts

Traders will look for cues from US GDP, PMI, non-farm payroll and inflation data. Also, inflation readings from China, Germany, and India will also be keenly watched

Updated On: 08 Feb 2026 | 7:55 PM IST

RBI walks the line between growth confidence and inflation risk

Inflation risks may prove to be broader than what that explanation implies

Updated On: 06 Feb 2026 | 11:33 PM IST

Business Standard poll: Status quo on repo rate likely in RBI review

Some economists said that a pause is warranted at this juncture to assess the upcoming CPI and GDP data, which will be released in mid to late February 2026 using new base years

Updated On: 03 Feb 2026 | 11:13 PM IST

New CPI series expected to push India's headline inflation prints higher

India's new CPI series, with lower food weight and higher core components, may nudge headline inflation higher but is expected to improve policy predictability and ease RBI's targeting

Updated On: 31 Jan 2026 | 12:06 AM IST

10 years of the inflation targeting framework: What lies ahead next?

As RBI reviews its inflation-targeting framework ahead of 2026, former MPC members back the 4% CPI target, saying the model has anchored expectations despite global shocks

Updated On: 30 Jan 2026 | 6:15 AM IST

Recent consumption measures may boost demand, lift GDP growth: Poonam Gupta

Challenge lies in identifying new sources of growth to sustain an accelerated trajectory, says Poonam Gupta

Updated On: 30 Jan 2026 | 6:06 AM IST

Economic Survey: Undervalued rupee aids trade, but investor caution lingers

India's inflation rate will likely be higher in FY27 than in FY26

Updated On: 30 Jan 2026 | 12:09 AM IST

Weighting of food and beverages to be cut sharply in new CPI series

India will sharply reduce the food and beverages weight in the CPI basket as part of a 2024 base-year revamp, aiming to better capture evolving consumption patterns

Updated On: 29 Jan 2026 | 11:25 PM IST

Datanomics: US imposes 25% tariff, worsening Iran's economic stress

As the US slaps fresh tariffs on Iran's trading partners, India faces little fallout - but the move underscores Tehran's deepening economic stress under decades of sanctions

Updated On: 14 Jan 2026 | 11:19 PM IST

CPI inflation 2011-12 series: End of an era as new base begins next month

CPI-food inflation peaked at 16.12 per cent in April 2018, while the lowest reading was recorded in April 2019

Updated On: 12 Jan 2026 | 10:47 PM IST

Q3 earnings, inflation data key drivers for markets this week: Analysts

Trading activity of foreign investors would also be keenly tracked by investors, experts noted

Updated On: 11 Jan 2026 | 4:47 PM IST

India consumer price inflation likely rose to 1.50% in December

Core inflation, excluding food and fuel components, likely edged up to 4.53 per cent in December from an estimated 4.2 per cent-4.3 per cent in Nov, ‍partly due to a 7 per cent rally in gold prices

Updated On: 09 Jan 2026 | 8:22 AM IST

Ind-Ra sees 'Goldilocks' FY27 as domestic reforms offset tariff risks

External demand is expected to fare better in FY27 than in FY26, aided by recently concluded trade agreements with the UK, New Zealand and Oman, and the prospect of a US trade deal later in the fiscal

Updated On: 06 Jan 2026 | 10:55 PM IST

India's FMCG sector likely to see 5% volume growth in coming months

After nearly 18 months of lukewarm performance, the FMCG sector registered a volume growth of 5.3 per cent in the August-October period of 2025

Updated On: 06 Jan 2026 | 9:14 PM IST

Govt likely to retain 4% inflation target for RBI, seeks feedback

The Reserve Bank of India currently aims to keep inflation anchored around 4%, the mid-point of a 2%-6% range mandated by the government

Updated On: 05 Jan 2026 | 6:26 PM IST