Context: Retail Inflation in India
Retail inflation, measured by the Consumer Price Index, increased from 3.5% in April 2026 to 3.9% in May 2026 due to rising food prices. Inflation remains within the Reserve Bank of India target range.
Consumer Price Index
- Measures retail inflation.
- Compiled by the National Statistics Office.
- Ministry: Ministry of Statistics and Programme Implementation.
Wholesale Price Index
- Measures wholesale inflation.
- Compiled by the Office of Economic Adviser.
- Department: Department for Promotion of Industry and Internal Trade.
- Ministry: Ministry of Commerce and Industry.
CPI vs WPI
Food Weight
- CPI: 45.86%
- WPI Food Articles: 22.62%
So, food weight is higher in CPI than WPI.
Services
- CPI includes services.
- WPI excludes services.
RBI Target
- RBI targets CPI inflation, not WPI inflation.
Prelims Facts
CPI Base Year
- Earlier: 2012
- Revised: 2024
WPI Base Year
- Earlier: 2011–12
- Revised: 2022–23
GDP Base Year
- Earlier: 2011–12
- Revised: 2022–23
Index of Industrial Production Base Year
- Earlier: 2011–12
- Revised: 2022–23
RBI Inflation Target
- 4% ± 2%
- Target range: 2% to 6%
Monetary Policy Committee
- 6 members.
- 3 from RBI.
- 3 nominated by Central Government.
- RBI Governor has a casting vote.
