New Delhi, August 14: Falling to a multi-year low of 1.08 per cent in the month of July, the wholesale based inflation in India moves up affecting the Indian markets drastically, mainly on account of cheaper fuel and food items.
The Wholesale Price Index inflation in the last month was at 2.02 per cent and that it was 5.27 per cent in July 2018. The data this time reveals that inflation in food articles measures 6.15 per cent as against 6.98 per cent in the previous month.
Inflation is a quantitative measure of the rate at which the average price level of a basket of selected goods and services in an economy increases over a period of time. Often expressed as a percentage, inflation indicates a decrease in the purchasing power of a nation’s currency.
As prices rise, they start to impact the general cost of living for the common public and the appropriate monetary authority of the country, like the central bank, then takes the necessary measures to keep inflation within permissible limits and keep the economy running smoothly.
In India over the years, the ruling reigns have been able to bring Indian economy into that sweet spot where the hardening prices of primary articles, fuel and power slashed, further bringing smiles on the striving faces.