Retail inflation in India has come down to 3.16% in April. This is the lowest level of inflation in 69 months. Inflation was 3.15% in July 2019. Retail inflation has come down due to continuous softening in the prices of food items. Earlier, retail inflation was 3.34% in the month of March. This was the lowest level of inflation in 67 months. Today, on Tuesday, May 13, retail inflation figures have been released. The price of food items decreased in April How does inflation increase or decrease? The increase and decrease in 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 according to the demand, the price of these things will increase. In this way the market comes under the grip of inflation. Simply put, excessive flow of money in the market or shortage of things causes inflation. On the other hand, if the demand is low and the supply is high, then inflation will be low. Inflation is determined by CPI As a customer, you and I buy goods from the retail market. The Consumer Price Index i.e. CPI is responsible for showing the change in prices related to this. CPI measures the average price that we pay for goods and services. Apart from crude oil, commodity prices, manufactured cost, there are many other things too, which play an important role in determining the retail inflation rate. There are about 300 goods, on the basis of whose prices the retail inflation rate is decided.
