Why in News?  

Inflation in wholesale prices dropped to 1.9% in November 2024. 

What is Inflation?  

Inflation refers to the rise in prices of goods and services, reducing purchasing power. 

Causes of Inflation 

• Demand-Pull: High demand increases prices. 
• Cost-Push: Rising production costs raise prices. 
• Wage-Price: A cycle between wage increases and price hikes. 

Measuring Food Inflation in India 

• CPI (Consumer Price Index): Measures the cost of goods and services for consumers. 
• CFPI (Consumer Food Price Index): Tracks price changes in food items. 
• WPI (Wholesale Price Index): Measures price changes of goods sold in bulk. 

Government Initiatives to Control Inflation 

• Subsidized Commodities: Distribution of subsidized vegetables and grains. 
• Import Duty Reductions: To increase domestic production. 
• Export Bans: Preventing export of certain goods to control prices. 
• Operation Greens: Stabilizing supply of tomatoes, onions, and potatoes. 

Strategies to Tackle Food Inflation 

• Improved Supply Chains: Efficient logistics and storage systems. 
• Agricultural Productivity: Investing in technology to boost crop yields. 
• Price Monitoring: Regulating food prices to prevent exploitation. 
• Agricultural Diversification: Encouraging farmers to grow varied crops. 
• Climate Resilience: Adopting smart practices to mitigate climate impact on agriculture.