India Inflation | India Retail Inflation Rate April 2024 Update | Retail inflation figures for April will be released today: There may be a decline in it, it was 4.85% in March


New Delhi24 minutes ago

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The government will release retail inflation figures for April today. Retail inflation is expected to decline this month. Earlier in March, the retail inflation rate was 4.85%, which was the lowest in 10 months. Earlier in June 2023, this rate was 4.81%.

How does inflation affect?
Inflation is directly related to purchasing power. For example, if the inflation rate is 6%, then Rs 100 earned will be worth only Rs 94. Therefore, investment should be made only keeping inflation in mind. Otherwise the value of your money will reduce.

How does inflation increase and decrease?
The rise and fall of inflation depends on the demand and supply of the product. If people have more money they will buy more things. Buying more things will increase the demand for things and if the supply is not as per the demand, the price of these things will increase.

In this way the market becomes vulnerable to inflation. Simply put, excessive flow of money or shortage of goods in the market causes inflation. Whereas if demand is less and supply is more then inflation will be less.

Inflation is determined by CPI
As a customer, you and I buy goods from the retail market. The work of showing the changes in prices related to this is done by the Consumer Price Index i.e. CPI. CPI measures the average price we pay for goods and services.

Apart from crude oil, commodity prices, manufactured costs, there are many other things which play an important role in determining the retail inflation rate. There are about 300 items on the basis of whose prices the retail inflation rate is decided.

What is Index of Industrial Production (IIP)?
As the name suggests, the production data of industries is called industrial production. Three big sectors are included in this. The first is manufacturing, that is, things made in industries, like cars, clothes, steel, cement etc.

The second is mining, which provides coal and minerals. The third is – Utilities i.e. things used by the general public. Such as roads, dams and bridges. Whatever production they do together is called industrial production.

How is it measured?
IIP is the unit for measuring industrial production – Index of Industrial Production. For this, the base year has been fixed as 2011-12. That is, the increase or decrease in the production of industries now compared to 2011-12 is called IIP.

77.63% of this entire IIP comes from the manufacturing sector. Apart from this, the direct impact of the production of these eight big industries – electricity, steel, refinery, crude oil, coal, cement, natural gas and fertilizer – is visible on IIP.

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