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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

India's wholesale inflation climbs to 10-month high of 1.8 % in January

Wholesale inflation rose to a 10-month high of 1.81% in January, driven by higher food and core prices, with vegetable inflation turning positive and manufactured goods showing renewed price pressures

Updated On: 16 Feb 2026 | 11:31 PM IST

Datanomics: Challenges galore for new Manipur CM Yumnam Khemchand Singh

As Manipur returns to elected rule under Yumnam Khemchand Singh, data on inflation, fiscal stress and unemployment show a fragile and uneven recovery

Updated On: 16 Feb 2026 | 11:12 PM IST

New CPI series triggers shakeup in state-level inflation rankings

Revised 2024 base year, fresh consumption weights and expanded market basket recast state inflation rankings; Telangana tops January list under new series

Updated On: 13 Feb 2026 | 11:56 PM IST

Datanomics: New Bangladesh govt faces muted growth, high inflation

From 2019 to 2024, Bangladesh beat India in terms of per capita income

Updated On: 13 Feb 2026 | 11:24 PM IST

Nomura drops April rate-cut call on firmer inflation, RBI 'stealth easing'

Last week, Nomura had assigned a 65 per cent probability that ‌the Reserve Bank of India would cut its policy rate by 25 basis points to 5 per cent

Updated On: 13 Feb 2026 | 12:45 PM IST

New CPI Series: Economists expect a prolonged pause on RBI's repo rate

Next step may be a rate increase as and when the inflation rate grows

Updated On: 13 Feb 2026 | 7:43 AM IST

New consumer inflation data to bolster policy responses: CEA Nageswaran

At 2.75%, January price rise well below RBI's target of 4%

Updated On: 13 Feb 2026 | 7:39 AM IST

New CPI series pegs India's retail inflation at 2.75% in January

Officials stressed that the December number under the old series and the January print are not comparable

Updated On: 12 Feb 2026 | 11:58 PM IST

2024 CPI series rebasing halves index value; inflation rate unchanged

Shift to CPI 2024 base sharply lowers headline index levels in back series, but inflation rate remains identical across rural and urban segments

Updated On: 12 Feb 2026 | 11:32 PM IST

Volatile items such as food and oil have lower weight in new CPI series

Rural still has more weighting than urban despite drop from earlier series

Updated On: 12 Feb 2026 | 11:30 PM IST

An improved index: New CPI will not affect monetary policy in the near term

India's new CPI series modernises inflation measurement, reshapes RBI policy signals, and underscores the need for more market-friendly data release timings

Updated On: 12 Feb 2026 | 10:17 PM IST

A new and comprehensive measure of India's retail inflation takes shape

India's new CPI series reflects changing consumption patterns, digital services and better data, marking a major step forward in measuring inflation accurately

Updated On: 12 Feb 2026 | 9:39 PM IST

Economic self-reliance core to govt policy: FM Nirmala Sitharaman

Finance minister says Budget aims to strengthen domestic capabilities, citing strong growth and low inflation as a "Goldilocks moment" for the economy

Updated On: 12 Feb 2026 | 7:51 PM IST

India's January retail inflation comes at 2.75%; govt revises base year

January 2026 CPI-based inflation: The inflation remained close to the Reserve Bank of India's lower tolerance threshold

Updated On: 12 Feb 2026 | 4:05 PM IST

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