2. Consumer Price Index

• The Consumer Price Index (CPI) is a measure of the change in prices of a basket of goods and services that are commonly purchased by consumers. It is the most commonly used measure of inflation.
• The CPI is calculated by comparing the prices of the goods and services in the basket in a particular period to those of the same in a base period.
• The base period is usually the previous year's corresponding period. The difference in prices is expressed as a percentage, and this is the CPI inflation rate.
• The CPI is calculated for eight different categories of goods and services Food and beverages, Housing, Clothing and footwear, Transport, Health, Education, Communication, Recreation and Miscellaneous goods and services.
• The weights of each category in the CPI are determined by the expenditure patterns of urban households. For example, food and beverages have the highest weight in the CPI, followed by housing and transport.
• The CPI inflation rate is an important indicator of the cost of living.
• It is used by the government to set monetary policy and by businesses to make pricing decisions.

3. Wholesale Price Index

• The Wholesale Price Index (WPI) is a measure of the change in prices of goods and services at the wholesale level.
• It is calculated by comparing the prices of a basket of goods and services in a particular period to those of the same in a base period.
• The base period is usually the previous year's corresponding period. The difference in prices is expressed as a percentage, and this is the WPI inflation rate.
• The WPI is calculated for 67 groups of commodities, which are further divided into 225 subgroups.
• The weights of each group and subgroup in the WPI are determined by the value of the goods and services produced in each group and subgroup.
• The WPI inflation rate is an important indicator of inflation at the wholesale level.
• It is used by businesses to make pricing decisions and by the government to set monetary policy.

4. Findings of the Report

4.1. Food inflation

• Food inflation in India remained high in August, at 9.94%. This was driven by rising prices of essential food items, such as cereals, pulses, vegetables, and oils.
• Eleven of the 12 items on the heavyweight food and beverages group of the CPI logged price increases, with oils and fats, the sole item logging a year-on-year decline in prices, posting its first sequential increase in nine months.
• Vegetables provided some relief, with tomatoes leading an appreciable month-on-month deflation of 5.88% in the 19-member basket.
• However, the cooking staples of potatoes and onions were among the seven items that continued to log sequential inflation (2.3% and 12.3%, respectively).

4.2. Monsoon deficit and rising crude oil prices

• The near-term inflation outlook is also made more uncertain by other factors, including a distinct deficit in monsoon rainfall.
• Besides the overall 10% shortfall, sharp regional and temporal anomalies in rain distribution have impacted either the sowing or the quality of produce of several farm items.
• Kharif's sowing of pulses had, as of September 8, recorded an 8.6% shortfall compared with the year-earlier period.
• Another inflation driver, crude oil, has also seen a steady rise in prices as the output cuts by major oil producers of the OPEC+ grouping start to bite.
• The price of India's crude basket had, as of September 12, climbed 7.2% from the average in August to $92.65/barrel, according to official data.

• For the RBI, the latest inflation data further roils its interest rate calculus.
• Unless CPI inflation decelerates by an incredible 250 basis points in September to a 4.33% pace, price gains are certain to substantially overshoot the monetary authority's 6.2% forecast for the July-September quarter, leaving it with few real options to achieve its medium-term price stability goal of 4% inflation.
• As the RBI has been at pains to stress, failure to anchor inflation expectations risks hurting growth.

5. About the sticky Consumer Price Index (CPI)

• The sticky Consumer Price Index (CPI) is a subset of the CPI that includes goods and services that change prices relatively infrequently.
• These goods and services are thought to incorporate expectations about future inflation to a greater degree than prices that change more frequently.
• Some of the items included in the sticky CPI are Rent, Housing costs, Utilities, Education, Healthcare, Transportation, Household furnishings and appliances, Personal insurance, Recreation, and Miscellaneous goods and services. 
• The sticky CPI is often used by economists to measure inflation expectations.
• This is because prices of sticky goods and services are less likely to be affected by short-term changes in supply and demand, and are therefore more likely to reflect changes in inflation expectations.
• The sticky CPI is also used by central banks to set monetary policy.
• This is because the central bank wants to make sure that inflation expectations are anchored at a low level.
• If inflation expectations start to rise, the central bank may raise interest rates to bring them back down.

6. How India’s retail inflation is measured?

• India's retail inflation is measured by the Consumer Price Index (CPI), a basket of goods and services commonly purchased by urban households.
• The CPI is calculated by the National Statistical Office (NSO) every month.
• The CPI is calculated by comparing the prices of the goods and services in the basket in a particular month to those of the same in a base month.
• The base month is usually the previous year's corresponding month. The difference in prices is expressed as a percentage, and this is the CPI inflation rate.
• The CPI is calculated for eight different categories of goods and services, Food and beverages, Housing, Clothing and footwear, Transport, Health, Education, Communication, Recreation and Miscellaneous goods and services.
• The weights of each category in the CPI are determined by the expenditure patterns of urban households. For example, food and beverages have the highest weight in the CPI, followed by housing and transport.
• The CPI inflation rate is an important indicator of the cost of living in India.
• It is used by the government to set monetary policy and by businesses to make pricing decisions.

7. Calculation of Inflation

• Inflation is the rate at which the prices of goods and services increase over time.
• It is calculated by comparing the prices of a basket of goods and services in a particular period to the prices of the same basket of goods and services in a base period.
• The base period is usually the previous year's corresponding period. The difference in prices is expressed as a percentage, and this is the inflation rate.

There are two main ways to calculate inflation

The PPI is calculated by the following formula:

PPI = (Cost of a basket of goods and services at the wholesale level in the current period / Cost of a basket of goods and services at the wholesale level in the base period) * 100

 

Source: The Hindu

 

 

ADITYA-L1 

1. Context 

Scientists from the Indian Institute of Astrophysics (IIA) have reported observations of a flareless coronal mass ejection (CME) from the solar atmosphere with the Visible Emission Line Coronagraph (VELC) instrument onboard Aditya-L1 mission

2. About Aditya-L1

• Aditya-L1's core objective revolves around positioning a spacecraft in the 'L1' spot in space, marking India's inaugural dedicated solar mission.
• This mission follows ISRO's successful AstroSat (2015), making it the agency's second astronomy observatory-class endeavour.

Image Source: ISRO

3. A Paradigm Shift in Solar Observations

• India's prior solar observations relied on ground-based telescopes and data from international solar missions.
• With ageing ground-based telescopes, India lacked a modern observational facility.
• Aditya-L1 seeks to address this gap and provide comprehensive solar data, advancing solar physics research.

4. Space weather alerts

• Astronomy-based space missions are gaining prominence due to their potential to inspire youth and contribute to scientific advancements.
• These missions, although time-consuming in development, play a crucial role in expanding our understanding of celestial phenomena.
• Solar flares, Coronal Mass Ejections (CMEs), and solar winds can disrupt space weather and impact satellite-dependent operations, such as telecommunications and power grids.
• Aditya-L1's role in studying the Sun is pivotal in enhancing our ability to predict and manage space weather disruptions.
• While AstroSat remains operational after eight years, Aditya-L1 presents a promising path for future Indian astronomy missions.
• With seven payloads, including instruments dedicated to solar observation, Aditya-L1 aims to advance our understanding of solar eruptions and flares.
• Solar physics now demands multiwavelength astronomy to comprehensively study solar events.
• Coordinating data from various instruments on Aditya-L1 is crucial to unravelling the complexities of solar phenomena.
• Aditya-L1 seeks to provide user-friendly information for safeguarding satellite-dependent operations.
• It may generate space weather alerts based on data obtained, enhancing our preparedness for space weather disturbances.

5. The Significance of L1

• Aditya-L1 embarks on a journey of nearly 100 days to reach L1, a location between the Earth and the Sun.
• This journey is shorter than Mangalyaan's voyage to Mars in 2014.
• After departing Earth's gravity, Aditya-L1 will enter a heliocentric path before reaching the L1 orbit.
• Six of Aditya-L1's payloads will remain inactive until approximately January 6, 2024, when the spacecraft is expected to enter a 'halo' orbit near L1.
• The activation of these payloads will enable the calibration of instruments before the commencement of scientific data collection.
• The L1 point in space, where Aditya-L1 will position itself, is one of the five Lagrange Points existing between any two celestial bodies in space.
• Being at L1 allows the spacecraft to make continuous observations with minimal energy expenditure.
• L1 is favoured for its unobstructed view of the Sun, making it ideal for solar research.

12. The Way Forward

• The Aditya-L1 mission represents a significant step in India's space exploration journey, offering the nation a unique opportunity to study the Sun comprehensively and contribute to space weather predictions.
• Positioned at the L1 point, this mission holds great promise for advancing our understanding of the Sun and its impact on Earth's space environment.

 

For Prelims: ISRO, Aditya L1, AstroSat, Coronal Mass Ejections, 'halo' orbit,  For Mains:  1. Describe the significance of the Aditya-L1 mission in the context of India's space exploration efforts. Explain how it differs from India's previous solar experiments. (250 Words)

 

 

Previous Year Questions   1. With reference to India's satellite launch vehicles, consider the following statements: (UPSC 2018) 1. PSLVs launch satellites useful for Earth resources monitoring whereas GSLVs are designed mainly to launch communication satellites. 2. Satellites launched by PSLV appear to remain permanently fixed in the same position in the sky, as viewed from a particular location on Earth. 3. GSLV Mk III is a four-stage launch vehicle with the first and third stages using solid rocket motors, and the second and fourth stages using liquid rocket engines. Which of the statements given above is/are correct? A. 1 only B. 2 and 3 C. 1 and 2 D. 3 only Answer: A   2. ISRO is related to: (SSC JE EE 2020)  A. space research       B. agricultural research       C. seed research          D. marine research   Answer: A   3. Aditya L1 is a ______. (ISRO IPRC Technical Assistant Mechanical 2016)  A. Long-range missile B. Rocket to moon C. Spacecraft project D. Light combat aircraft   Answer: C   4. With reference to 'Astrosat', the astronomical observatory launched by India, which of the following statements is/are correct? (UPSC 2016) 1. Other than USA and Russia, India is the only country to have launched a similar observatory into space. 2. Astrosat is a 2000 kg satellite placed in an orbit at 1650 km above the surface of the Earth. Select the correct answer using the code given below. A. 1 only           B.  2 only          C. Both 1 and 2         D. Neither 1 nor 2   Answer: D   5. If a major solar storm (solar flare) reaches the Earth, which of the following are the possible effects on the Earth? (UPSC 2022) 1. GPS and navigation systems could fail. 2. Tsunamis could occur at equatorial regions. 3. Power grids could be damaged. 4. Intense auroras could occur over much of the Earth. 5. Forest fires could take place over much of the planet. 6. Orbits of the satellites could be disturbed. 7. Shortwave radio communication of the aircraft flying over polar regions could be interrupted. Select the correct answer using the code given below: A. 1, 2, 4 and 5 only    B. 2, 3, 5, 6 and 7 only    C.  1, 3, 4, 6 and 7 only    D.  1, 2, 3, 4, 5, 6 and 7   Answer: C

 

Source: The Indian Express