Inflation increased in September compared to August, retail inflation at 7.41 percent
There seems to be no relief for the common man who is suffering from inflation. There has been an increase in the retail inflation rate (CPI) in the country once again. According to the latest data, the retail inflation rate (CPI) has increased to 7.41 percent in September. It was 7 per cent in August. It was 4.35 per cent in September 2021.
The rate of retail inflation in July was 6.71 percent. The rise in inflation is due to higher than expected rise in food prices. India’s retail inflation rose to 7.41% in September, the highest since April, on rising food prices and higher energy costs. Inflation in food articles has risen to 8.60 per cent from 7.62% in August. CPI rural inflation has increased to 7.56 per cent from 7.15 in August. Industrial production for August declined 0.8% year-on-year.
Inflation continues to rise
Data released by the National Statistical Office shows that the Consumer Price Index-based inflation (CPI) in September rose faster than in August. After this hike, the RBI will again be under pressure to increase the repo rate to control the rising prices.
Food inflation, which accounts for nearly half of the consumer price index (CPI) basket, is made up of essential grains such as wheat, rice and pulses. The price of these grains has risen sharply in recent times. This increase has increased the budget of domestic consumers. Prices of basic commodities like cereals and vegetables are the biggest determinants of retail inflation. Supply concerns have been heightened by the ever-changing rainfall patterns and Russia’s invasion of Ukraine. Its effect is also visible on inflation.
Inflation remains above the tolerance band
After inflation remains above the 6 per cent level, the RBI will now have to submit a report to the central government explaining the reasons for its failure to control inflation. The central government has asked the RBI to ensure that retail inflation remains in the range of 2-6 per cent. In September, RBI Governor Shaktikanta Das said imported inflationary pressures felt at the beginning of this financial year have eased, but it still remains elevated in food and energy items.
