00:00Namaskar, my name is Digvijay Singh and we are going to talk about inflation.
00:04Yes, the numbers of retail inflation have been released.
00:07In May, inflation slipped to the lower level of 12 months, which was 4.75%.
00:13In April, it was 4.83%.
00:17This time, there has been a slight drop in inflation, but it is still above the upper limit of Reserve Bank i.e. RBI.
00:25According to the National Statistical Office, there has been a drop in food inflation as well as retail inflation.
00:34In May, it was at 8.69%.
00:38So let us know how inflation increases and decreases.
00:41The increase and decrease of inflation depends on the demand and supply of the product.
00:46If people have more money, they will buy more goods.
00:50If people buy more goods, their demand will increase.
00:53And if there is no supply as per demand, the price of these goods will increase.
00:57In this way, the market is in the grip of inflation.
01:00Now let us understand how inflation is determined by Consumer Price Index i.e. CPI.
01:06As a customer, you and I buy goods from the retail market.
01:11Consumer Price Index i.e. CPI works to show the changes in related prices.
01:17The average price we pay for goods and services is measured by CPI.
01:24There are many other things besides raw oil, commodity prices, manufactured cost,
01:30which determine the importance of retail inflation.
01:35There are about 300 such goods whose retail inflation is determined based on prices.
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01:50Namaskar
