Publish Date: | Mon, 13 Jun 2022 07:22 PM (IST)
Drop in Retail inflation rate: On the inflation front, the common man has got some relief. India’s retail inflation rate stood at 7.04% in May, a slight decline compared to the month of April. Retail inflation had reached 7.79% in April. According to data released by the Ministry of Statistics and Programs, retail inflation based on the Consumer Price Index (CPI) declined to 7.04% in April from 7.79% in April. It is believed that due to the reduction in the prices of food items, petrol-diesel and electricity in May, the cost of transportation has come down and due to this the inflation rate has come down. CPI-based inflation stood at 7.79 per cent in April, 6.95 per cent in March, 6.07 per cent in February and 6.01 per cent in January.
India’s retail inflation at 7.04% in May 2022, as against 7.79% in April 2022. pic.twitter.com/tEEQlZaQei
— ANI (@ANI) June 13, 2022
However, food inflation, which accounts for nearly half of the CPI basket, rose year-on-year to 7.97 per cent in May. At the same time, food items have become slightly cheaper in the month of May as compared to April, as its rate has been 7.97 percent. At the same time, the food inflation rate in April was 8.31%. However, the rising price of vegetables still remains a cause for concern. Inflation rate of vegetables in the month of May stood at 18.26 percent.
How did the shortage come?
On May 21, the Central Government had decided to reduce the excise duty on petrol and diesel by Rs.8 and Rs.6 per liter. It is believed that retail inflation has come down due to reduction in the cost of freight. However, the rise in crude oil prices has remained persistent and still remains above $ 120 per barrel. Therefore, there is no significant possibility of reduction in inflation. On the other hand, the retail inflation rate is still more than the upper limit of the RBI’s tolerance band of 6 percent.
Posted By: Shailendra Kumar