A consumer price index measures price level change by considering mainly goods and services consumed by households.
According to the Ministry of Statistics and Programme Implementation (MOSPI), Consumer Price Indices (CPI) measure changes over time in general level of prices of goods and services that households acquire for the purpose of consumption. Most countries have a leading CPI to measure and monitor price movements within the country. In India, the MOSPI and MOLE (Ministry of Labour and Employment) prepares consumer price indices. Of these, the All India Consumer Price Index (CPI) of the MOSPI is the widely used one and it is taken by the RBI to design monetary policy.
