As the nation gears up for the upcoming general elections, it becomes crucial to delve into inflation in India to better understand the country's economic situation. Inflation has detrimental effects on the economy as it diminishes the purchasing power of individuals over time. Inflation is a measure that causes the prices of both goods and services to rise over time and buyers will feel the pinch as it affects their personal finance. There are two indices that are used to measure inflation in India ” the consumer price index (CPI) and the wholesale price index (WPI). India’s retail inflation, which is measured by the consumer price index (CPI), eased to 5.10% in January 2024 from 5.69% in December 2023. The wholesale Price Index (WPI), on the other hand, which calculates the overall prices of goods before selling at retail prices, stood at 0.73% in December 2023, from 0.26% in November last year. Average home prices in India are set to rise 7% this year and next, driven by purchases of luxury properties, according to analysts. Home prices rose 4.3% in 2023, the fastest since 2018. Sharp home price rises add to the challenges of weaker segments in the economy that struggle with stagnant wages and poverty.
