PIB Summary- 14th June, 2024 | Current Affairs & Hindu Analysis: Daily, Weekly & Monthly - UPSC PDF Download

G7 (Group of Seven)

Context:

G7 leaders start their annual summit on June 13 looking to double down on support for Ukraine in its war with Russia and offer a united face in confronting China’s political and economic ambitions.

About G7:

• G7 stands for Group of Seven, which is an international intergovernmental economic organization consisting of seven member countries.
• The member countries are the United States, Canada, Japan, Germany, France, Italy, and the United Kingdom.
• As of 2022, G7 countries make up 10% of the world’s population, 31% of the global GDP, and 21% of global carbon dioxide emissions.

History:

• G7 was founded in 1975 as the G6, consisting of the six richest countries in the world at that time.
• Canada joined the group in 1976, and the group became known as the G7.
• The group meets annually to discuss global economic issues and make decisions that can affect the global economy.

Objectives:

• The main objectives of G7 are to promote economic growth and stability, enhance international trade, and coordinate policies on economic issues among the member countries.
• The group also focuses on addressing global challenges such as climate change, cybersecurity, and geopolitical tensions.

Meetings and decisions:

• G7 leaders meet annually at the G7 Summit to discuss global economic issues and coordinate policies.
• Decisions made by the G7 can have a significant impact on the global economy and international relations.
• The G7 also collaborates with other international organizations such as the International Monetary Fund and the World Bank.

Criticism:

• The G7 has been criticized for being too exclusive, as it only includes the richest countries in the world and does not represent the interests of developing nations.
• Critics also argue that decisions made by the G7 can have negative consequences for developing countries and can perpetuate global economic inequality.

Consumer Food Price Index

Context

Consumer Price Index numbers on base 2012=100 for rural, urban and combined for May 2024.

About the Consumer Food Price Index (CFPI):

• Definition: The Consumer Food Price Index (CFPI) measures the change in retail prices of food items consumed by the population.
• Purpose: It is a specific measure of inflation focusing solely on the price changes of food items in a consumer’s basket of goods and services.
• Usage: The CFPI is a sub-component of the broader Consumer Price Index (CPI) and is utilized by the Reserve Bank of India (RBI) to monitor inflation.
• Release: The Central Statistics Office (CSO), under the Ministry of Statistics and Programme Implementation (MOSPI), began releasing CFPI data for three categories—rural, urban, and combined—separately on an all-India basis from May 2014.
• Methodology: Similar to the Consumer Price Index (CPI), the CFPI is calculated monthly using the same methodology.
  • The current base year used is 2012.
  • The CSO revised the base year for CPI and CFPI from 2010 to 2012 in January 2015.