Which of the following states recorded a retail inflation rate higher than RBI's tolerance threshold of 6%, in the Financial Year 2024 (FY24)?

Correct option is B

The correct answer is (b) Manipur.
Explanation:
● During FY24, several states breached the RBI's upper tolerance limit of 6% for retail inflation (CPI).
● Manipur recorded exceptionally high inflation rates, often staying above 10%, primarily due to supply chain disruptions caused by ethnic conflict.
Information Booster:
● CPI (Consumer Price Index) – Measures retail inflation by tracking price changes of a basket of goods and services used by households.
● MPC (Monetary Policy Committee) – The body chaired by the RBI Governor that sets the policy repo rate to control inflation.
● Headline Inflation – The total inflation within an economy, including commodities such as food and energy prices.
Additional Knowledge:
● WPI (Wholesale Price Index) – Measures inflation at the wholesale level.
● Stagflation – A situation of persistent high inflation combined with high unemployment and stagnant demand.