Retail inflation reaches record 7.79% in April, reaches 8-year peak
The prices of petrol-diesel, LPG, domestic natural gas, CNG, PNG had increased wildly in April. This raised the fear that the increase in prices could trigger inflation. This apprehension proved to be completely true on Thursday when the retail inflation data for April 2022 was released by the government.
According to government data released on Thursday, the consumer price index (CPI) based inflation rose to 7.79 percent in April. This is the highest level in the last 8 years. Earlier in September 2014, retail inflation had touched this level. Due to this, in March last month too, retail inflation had flared up to 6.95 percent.
Food inflation rising
According to the data, the prices of food items have also increased significantly in April. Food inflation this month has risen to 8.38 percent from 7.68 percent in March. The share of food inflation in the Consumer Price Index (CPI) is almost half. The effect of a sharp jump in the prices of fruits and vegetables at the domestic level, including the rise in the prices of edible oil and cereals at the global level, is visible on the food inflation.
Increased pressure on Reserve Bank
The pressure on the Reserve Bank to control inflation has increased. In the coming days, several rounds of increase in interest rates can be seen by the Reserve Bank. In order to curb inflation, the Reserve Bank had increased the repo rate this month. Reserve Bank Governor Shaktikanta Das had said that inflation may flare up in April.
It is estimated that inflation will remain at high level in the financial year 2022-23. Earlier, the Finance Ministry had said in its monthly economic review report that only by the steps taken by the government and the RBI, inflation can be reduced in the current financial year. The Finance Ministry has said that it will take steps to reduce inflation.
