Consumer Price Index (CPI)

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Context

• India's year-on-year inflation rate based on the all-India Consumer Price Index (CPI) has decreased to 4.75% in May 2024, according to provisional data released by the Ministry of Statistics and Programme Implementation.

Findings

Rural and Urban Inflation Trends

• The rural inflation rate stands at 5.28%, while the urban inflation rate is slightly lower at 4.15%. This disparity highlights differing economic pressures in rural and urban areas but indicates a broad reduction in inflation across the country.

Notable Declines in Specific Categories

• Among various categories, the 'Spices' sub-group has shown a significant decline in year-on-year inflation compared to April 2024. Additionally, notable decreases in inflation have been observed in the 'Clothing & Footwear', 'Housing', and 'Miscellaneous' groups since the previous month, contributing to the overall reduction in inflation.

Detailed Inflation Rates

• The all-India inflation rates for May 2024 over May 2023 based on General Indices and Consumer Food Price Indices (CFPIs) are as follows:

Category	Inflation Rate (May 2024)
Rural
CPI (General)	5.28%
CFPI	8.62%
Urban
CPI (General)	4.15%
CFPI	8.83%
Combined
CPI (General)	4.75%
CFPI	8.69%

All about CPI: https://www.iasgyan.in/daily-current-affairs/cpi#:~:text=Consumer%20Price%20Index%20or%20CPI,medical%20care%2C%20education%2C%20etc.

All about CPI and WPI: https://www.iasgyan.in/daily-current-affairs/wpi

PRACTICE QUESTION Q.  Which governmental body is responsible for collecting Consumer Price Index (CPI) data in India, specifically for the Urban Non-Manual Employees (UNME), as per the latest statistics? a) Ministry of Finance b) Ministry of Commerce and Industry c) Ministry of Statistics and Program Implementation d) Ministry of Labour Answer:  c) Ministry of Statistics and Program Implementation

SOURCE: PIB