GS-III: Economy, Environment, S&T
Consumer Price Index (CPI)
Not met yet — counts as met once you answer a question on it.
Retail price changes across six commodity groups, including food and beverages, fuel and light, and miscellaneous services, are what CPI tracks. Compiled by MoSPI for rural, urban, and combined series, CPI-Combined is the headline inflation benchmark under the flexible inflation targeting framework mandated by Section 45ZA of the RBI Act, 1934. The Monetary Policy Committee uses it, not the Wholesale Price Index, to set repo-rate policy. A 4% target with a 2% tolerance band on either side binds MPC decisions, so each monthly release directly triggers monetary policy debate, fiscal management discussion, and real-wage analysis.