It is the increase in price of goods sold at retail market . Basically increase in inelastic goods are the cause of retail inflation . In India retail price is measured by consumer price index . CPI is based on 260 commodities but includes some services too . The CPI is divided into four categories CPI-IW , CPI- AL , CPI-RL and CPI-UNME . CPI is also used to calculate Dearness Allowance ( DA ) of government employees . The increase in petrol and diseal prices leads to increase in total transport cost which further leads to increase in retail prices . But with the emergence of GST retail prices of consumable goods is now decreasing .
What is Retail Inflation?
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Retail Inflation means the increase in prices of certain products or commodities compared to a base price. In India, it is linked to Consumer Price Index(CPI) which is managed by Ministry of Statistics..