- The Reserve Bank of India (RBI) in its monetary policy report (MPR) has projected Consumer price index (CPI) based inflation to decline from 4.8% in Q1: 2020-21 to 4%in Q2, 2.7% in Q3 and 2.4% in Q4.
- This MPR is a part of the out-of-turn review of monetary policy held in March end due to uncertainties arising from the economic lockdown.
What is CPI?
- It is an index measuring retail inflation in the economy by collecting the change in prices of most common goods and services used by consumers. CPI is calculated for a fixed list of items including food, housing, apparel, transportation, electronics, medical care, education, etc. to calculate the inflation levels in an economy.
