Due to more expensive food items, retail price inflation increased to 6.21% in October. This is the highest level of inflation in 14 months. The inflation rate in August 2023 was 6.83%. While in September, a month before October, this rate reached 5.49% due to the cost of vegetables.
Food products contribute around 50% to the inflation basket. Its inflation rose from 9.24% to 10.87% on a monthly basis. While rural inflation increased from 5.87% to 6.68% and urban inflation from 5.05% to 5.62%.
What is the impact of inflation?
Inflation is directly linked to purchasing power. For example, if the inflation rate is 6%, then Rs 100 earned will be worth only Rs 94. Therefore, investments should be made only keeping inflation in mind. Otherwise, the value of your money will decrease.
How does inflation rise and fall?
The rise and fall of inflation depends on the demand and supply of the product. If people have more money, they will buy more things. Buying more things will increase the demand for things and if the supply is not in line with the demand, the price of those things will increase.
The market thus becomes vulnerable to inflation. Simply put, an excessive flow of money or a shortage of goods in the market causes inflation. Whereas if demand is less and supply is greater, inflation will be lower.
Inflation is determined by the CPI
As a customer, you and I purchase products from the retail market. The job of showing price changes related to this is done by the Consumer Price Index, i.e. the CPI. The CPI measures the average price we pay for goods and services.
Besides crude oil, raw material prices and manufacturing costs, many other factors play an important role in determining the rate of retail inflation. There are about 300 items based on which the retail inflation rate is determined.
Gold fell by ₹1,519 to ₹75,321: Silver became cheaper by ₹2,554 and was being sold at ₹88,305 per kg, see gold price in carat.
Gold and silver prices fell sharply today (November 12). According to the India Bullion and Jewelers Association (IBJA), the price of 10 grams of 24-carat gold fell by Rs 1,519 to Rs 75,321. Earlier, its price was Rs 76,840 per ten grams.
At the same time, the price of silver has also fallen today. It fell by Rs 2,554 to Rs 88,305 per kg. Earlier, silver was at Rs 90,859. At the same time, on October 23, silver had touched an all-time high of Rs 99,151 and on October 30, gold had touched an all-time high of Rs 79,681. …
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Gold fell by ₹1,519 to ₹75,321: Silver became cheaper by ₹2,554 and was being sold at ₹88,305 per kg, see gold price in carat.1h00
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