Concern about inflation has once again increased in the country. The wholesale inflation rate has increased to 3.88 percent in the month of March, which was 2.13 percent in February. In this way, a sharp increase of 1.75 percent has been recorded within a month.
According to data released by the Commerce Ministry on April 15, this is the highest level of wholesale inflation in the last 38 months. Earlier in January 2023, the wholesale inflation rate had reached 4.73 percent. Not only wholesale inflation, retail inflation has also seen an increase. Retail inflation was recorded at 3.4 percent in March, while it was 3.21 percent in February. It is clear from this that the pressure of inflation is now gradually reaching the common people also.
Experts believe that this increase in inflation is also related to global conditions. Especially the increasing tension in the Middle East, where there is a situation of conflict between Israel, America and Iran, is affecting the international markets.
Globally, fluctuations in crude oil prices and disruptions in the supply chain are also considered to be the main reasons for increasing inflation. This directly impacts import dependent countries like India.
According to economic experts, if the international situation does not improve soon, inflation may increase further in the coming months. This is likely to put additional burden on the pockets of the general public. This situation can be challenging for the government and the Reserve Bank, because on the one hand they have to control inflation, while on the other hand they also have to maintain the pace of economic growth.