CONTENTS

1. G7 (Group of Seven)
2. Consumer Food Price Index

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.

Relevance:

GS II: International Relations

Dimensions of the Article:

1. About G7

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.

Relevance:

Facts for Prelims

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.