Understanding the New Inflation Measurement Method | Current News | Drishti IAS

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In this video, we explore the recent changes in the commodity basket and their implications on retail inflation. The shift in the Consumer Price Index (CPI) base year to 2024 has caused retail inflation to rise to 2.75% in January, a key factor for UPSC aspirants to understand for both the Economics and General Studies papers.
We examine how the alteration in the commodity basket affects the inflation calculation and the broader economic environment. We also clarify what "charges" mean in this context and analyze how this change could impact both businesses and consumers. As the CPI base year shifts, it’s crucial to comprehend the underlying factors that drive inflation, including food prices, energy, and housing costs. For more UPSC current affairs and exam-related content, hit the notification bell and share this video with fellow aspirants.


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