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CPI for May stood at 107; prices of fuel, clothing and miscellaneous item went up

21 Jun 2011 Evaluate

The Consumer Price Index (CPI) stood at 107 points in May 2011, higher by 7% as compared to the base of 100 in 2010 and marginally up by 0.1% from the month of April. According to the data released by the Central Statistics Office, the CPI for rural areas increased by 9% in May, whereas, CPI for urban areas too was higher by 5%.  Inflation based on the Consumer Price Index for Agricultural Labourers (CPI-AL) and the Consumer Price Index for Rural Labourers (CPI-RL) stood at 9.63% in May against 9.11% in April.  On point-by-point basis, both the indices, CPI-AL and CPI-RL, reported a marginal rise during May.

The CPI measures in index from the monthly changes in the cost of purchasing a fixed representative ‘basket’ of consumer goods and services. To monitor the price movement government has selected 1,181 villages and 310 towns to collect the data, from all the states and union territories. The new consumer price index was introduced to reflect the real moment of prices at the micro-level and help policymakers like planning commission and RBI in better decision formulation. The CPI have been released for five major groups i.e. food, beverages and tobacco; fuel and light; housing; clothing, bedding and footwear; and miscellaneous items.

The rise in the CPI for the month of May was mainly due to rise in prices of select food items like milk, tobacco, fuel and clothing. At the all-India level, the index for milk rose by 1.8% to 112 points in May against April, indices for pan, tobacco and intoxicants went up by 1.75% in May, while oil and fats were up marginally. However, prices of vegetables fell by 1% in May as compared to April.

Indices for fuel and light was up by 1.85% in May vis-à-vis  April to 110 points, indices for  Clothing, bedding and footwear increased by 1.78% in May in comparison with April to 114 points and Miscellaneous items increased by 0.94% in May vis-à-vis April to 107 points. The CPI for miscellaneous items was pegged at 107 points on a countrywide basis in May, up marginally from 106 in April.




 

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