The Food Price Index (FPI) is a measure of the changes in the prices of food items in a country over time. The index is calculated based on the prices of a basket of food items, including cereals, pulses, sugar, edible oils, and more. The FPI is used to measure inflation in the food and agricultural sector in India, and is one of the key indicators used by the RBI and the government to monitor the overall economic health of the country.

But, do make a note that FPI is just one of the many indicators that are used to measure the inflation and overall economic conditions. There are other Indexes as well that are used for similar purpose. Check the video to get an in-depth knowledge on this topic in an animated format.

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