HomeCURRENT AFFAIRSBUSINESSRetail inflation rises to 7 per cent in August

Retail inflation rises to 7 per cent in August

After three months of decline, retail inflation has again reached 7 percent. Inflation has increased due to irregular monsoon in the country. There may be further pressure on the prices of food items between the months of September to November. For every month of this year, retail inflation has remained above the RBI’s (Reserve Bank of India) tolerance band between 2 and 6 per cent.

After three months of decline, retail inflation has once again increased to 7 percent in the month of August. This has stopped the three-month-long decline in the prices of food items. Now the Reserve Bank of India is once again under pressure to raise rates more aggressively to control rising prices. The latest data shows that retail inflation for every month of this year has remained above the RBI’s tolerance band of between 2 and 6 per cent.

Although crude oil prices have fallen significantly in recent weeks, there has been no positive impact on inflation as fuel accounts for a very small share of all consumer goods. At the same time, the share of food inflation in the Consumer Price Index (CPI) is almost half. An increase was registered in this, because this time the prices of wheat, rice and pulses have jumped due to the record heat. This has increased the pressure on the domestic budget, which is already facing inflation.

According to the data, inflation in food articles stood at 7.62 per cent in August, up from 6.69 per cent in July and 3.11 per cent in August 2021. This time the irregular monsoon in the country indicates more damage to crops. This has raised the possibility of further increase in food prices in the coming months. Due to unfavorable weather conditions, further pressure on food prices may increase between September and November.

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