Inflation in India: Due to the increase in the prices of many vegetables including tomatoes and onions in the country, food items have become expensive. Retail inflation touched a new record high of 7.44 percent in July, and yesterday’s data raised concerns. Retail inflation in the country has reached a 42-month high due to skyrocketing prices of vegetables.
Why is inflation increasing in the country?
According to a report published in the English portal Minute, the main reason for the increase in inflation is the huge increase in the prices of vegetables. Tomatoes, used in everyday life, are selling at a 65-month high. All these factors have pushed the inflation figure above 7%.
Inflation increased due to vegetable prices.
Importantly, the Reserve Bank of India had kept the repo rate unchanged from April 2023 after the fall in inflation in April and May, but rising inflation has now created new challenges for the RBI. A third of the year-on-year change in the Consumer Price Index (CPI) in July, about 32 percent, was recorded due to the increase in vegetable prices. Among vegetables too, the steep rise in the price of tomatoes has added to the challenges. Apart from tomato, prices of vegetables like onion have also increased. In such a case, its impact is clearly visible on the rate of retail inflation. It is important to note that vegetables are something that is consumed every day. In such a case, their increasing price directly affects the pocket of common people and then it also affects the CPI.
Rising stress of Reserve Bank
The retail inflation data has added to the RBI’s stress. The Reserve Bank has been trying to control inflation for a long time and keep it in the range of 2 to 6 percent. In such a situation, the CPI figure crossed the 6 percent mark in July. In such a situation, the pressure has increased on the Reserve Bank to further increase the repo rate. In such a situation, it will be interesting to see what RBI will do to control inflation.
How long will inflation remain under control?
According to a report published in Live Minute, experts believe that common people will have to wait for some more time to get relief from inflation. They are hopeful that the price of vegetables will come down between October and December. Before that, the inflation figures in August could scare once again. Importantly, in order to control the price of tomato, the government has introduced it in several major cities from July 2023 with the help of National Cooperative Federation of India (NCCF) at the rate of Rs 70 per kg in various regions of the country including Delhi NCR. is selling . Along with this, the Government of India is also importing tomatoes from Nepal to control the price.
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