Inflation seems to be increasing once again in the country. India’s retail inflation rate has increased to 3.48 percent in the month of April. Earlier in March this figure was 3.40 percent. That is, a slight but steady increase in inflation has been recorded on a month-on-month basis. These figures were released on May 12, in which many important indicators of the economy have emerged.
According to experts, this increase in inflation has happened at a time when geopolitical tension is increasing at the global level. There is uncertainty in the markets especially regarding the increasing tension between America and Iran. If this tension continues for a long time, there may be pressure on the prices of oil and other commodities in the international market, which may have a direct impact on the inflation of import-dependent countries like India.
According to statistics, the biggest reason for increase in inflation is the rise in prices of food items. Food inflation increased to 4.20 percent in April, while it was 3.87 percent in March. That is, there has been a clear increase in the prices of food items, which has put additional burden on the pockets of the common consumer.
An increase in inflation has been recorded in both rural and urban areas. Urban inflation rate has increased from 3.11 percent in March to 3.16 percent. Although this increase is relatively limited, the continuously increasing trend is considered a matter of concern. On the other hand, the inflation rate in rural areas has increased from 3.63 percent to 3.74 percent, which shows pressure on the rural economy.
Economists believe that fluctuations in food prices and global tensions can together determine the direction of inflation in the coming months. If the prices of crude oil and imported goods increase, it can affect everything from transportation costs to everyday items.
This data is being considered an important signal for the government and the Reserve Bank, because maintaining the balance between inflation control and economic development is a big challenge. Experts say that at present inflation is under control, but any kind of global turmoil can affect it.