Explained: What is CPI-based inflation or retail inflation

Although inflation is an overused term in financial parlance, only a few identify that we generally refer to CPI-based inflation while using this term. Consumer Price Index (CPI) and Wholesale Price Index (WPI) are two indicators used to measure changing price levels for a basket of goods. Here, we try to understand the facts about CPI-based inflation (also referred to as Retail Inflation).