Context

•    As per the data released by the Ministry of statistics and program implementation, CPI jumps to 6.07% which get over and above the RBI`s threshold limit of 6%. 

Consumer price index (CPI) 

• Consumer Price Index measures the change in retail prices in a predetermined basket of consumer goods and services such as transportation, food, and medical care.
• This index is most frequently used to take a measure of inflation and deflation in the country.
• Changes in CPI also assess the price changes associated with the cost of living.
• The change in price over a period of time is referred to as CPI-based inflation or Retail inflation.

CPI formula - Current price of the given basket / Base year price of the basket * 100

• It is released by the national statistical office of MOSPI on monthly basis.
• The Base year for CPI is 2012.

Types of CPI

    There is four  CPI in India three of which are related to the working class. 

1. CPI for industrial workers(CPI-IW)
2. CPI for agriculture laborers (CPI-AL)
3. CPI for Rural Labourers (CPI-RL)
4. CPI( Urban non-manual employees (CPI-UNME)

 Among these first three are compiled and published by Labour Bureau in the ministry of labor and employment and the fourth one by NSO.