Due to bad weather and costlier vegetables, retail inflation has increased to 5.49% in the month of September. In August it was at 3.65%. This is at the highest level in 9 months.
At the same time, food inflation rate has increased from 5.66% to 9.24%. Urban inflation has also increased from 3.14% to 5.05% on month-on-month basis. Rural inflation has increased from 4.16% to 5.87%.
Food inflation was 5.66% in September 2023, now it came to 9.24%
Food items contribute about 50% to the inflation basket. Its inflation has increased from 5.66% to 9.24% on month-on-month basis. Whereas a year ago, in August 2023, food inflation was 6.62%. That is, it has increased on an annual basis also.
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.
Read this news also…
Wholesale inflation increased to 1.84% in September: Vegetables and food items became expensive, it was 1.31% in August.
Wholesale inflation has increased to 1.84% in the month of September. Earlier in August, wholesale inflation had come down to 1.31%. In July it was at 2.04%. Inflation has increased due to increase in prices of vegetables and food items. Read the full news…
Graphics Source: VaskarAssets
