Inflation remains high in the country. According to a poll, retail inflation in India may remain at an 18-month high in April. Rising fuel and food prices are continuously increasing inflation.
Inflation has remained above the Reserve Bank’s upper limit for the fourth consecutive month.
The government had put on hold the hike in fuel prices due to elections in five major states in the country.
After March, the price of petrol and diesel was expected to increase, so inflation started increasing.
At the same time, due to the Ukraine-Russia war in late February, energy prices have increased globally.
The government had put on hold the hike in fuel prices due to elections in five major states in the country.
After March, the price of petrol and diesel was expected to increase, so inflation started increasing.
At the same time, due to the Ukraine-Russia war in late February, energy prices have increased globally.
Food and fuel prices spoil the game
Food inflation, which accounts for nearly half of the consumer price index (CPI) basket, hit a multi-month high in March. Globally, vegetable and cooking oil prices are expected to remain elevated on the back of increase.
All these factors have pushed inflation in Asia’s third largest economy to 7.5 percent in April.
Inflation is above the Reserve Bank’s upper limit
This is the highest inflation rate after October 2020 and remains above the RBI’s upper limit of 6 percent.
According to the forecast of the data to be released on May 12, inflation may remain between 7.0% and 7.85%.
At the same time, the Reserve Bank’s upper limit of inflation is 6 percent, that is, inflation is running much above the upper limit.
