Retail inflation goes past RBI’s limit to 6.1% in Oct.

Why in News

Retail inflation rose to 6.09% in October 2026, with consumer food inflation at 8.94%.

Prelims Pointers

• The Consumer Price Index (CPI) measures changes in retail prices of a basket of goods and services.
• The National Statistical Office (NSO), Ministry of Statistics and Programme Implementation, compiles the rural, urban and combined CPI.
• Different price indices have different coverage.
  1. CPI Combined covers rural and urban consumers and is used for India’s inflation target.
  2. Wholesale Price Index (WPI) covers goods at the wholesale level and excludes services.
  3. CPI for Industrial Workers (CPI-IW) is compiled by the Labour Bureau.
• Disinflation means a slower rise in prices.
• Deflation means a fall in the general price level.

Prelims Traps

• “WPI includes services, whereas CPI excludes them.” This is incorrect. CPI includes services, while WPI excludes them. (UPSC Prelims 2020)
• “The base effect means changing the index’s base year.” This is incorrect. It is the influence of the previous year’s price level on the current inflation rate. (UPSC Prelims 2011)