Retail Inflation Increases: Due to rising food prices and high fuel prices, the retail inflation data has reached an 18-month high. In the month of April, the figure of retail inflation has crossed 7 percent. According to the data released by the Ministry of Statistics, the retail inflation rate in April 2022 has been 7.79 percent. Whereas in March 2022, the retail inflation rate was 6.95 percent. More than this, the retail inflation rate was 7.34 percent in September 2020.

Retail inflation at 18-month high
Retail inflation has risen above 7.50 per cent to 7.79 per cent, which is much higher than the RBI’s fixed upper limit of 6 per cent for inflation. While announcing the monetary policy in April, the RBI had projected the inflation rate to be 5.7 percent in 2022-23. According to NSO data, there has been a tremendous increase in inflation in urban areas. In March 2022, the retail inflation rate in urban areas has been 8.38 percent, while the retail inflation rate in rural areas has been 7.09 percent.

Expensive fuel increased inflation
Due to the Russia-Ukraine war, there has been a jump in the price of crude oil. From 22 March 2022, government oil companies started increasing the prices of fuel, after which petrol diesel has become costlier by Rs 10 per liter. Expensive diesel means expensive transportation. Due to this, there has been a jump in the prices of many commodities. So from April 1, the prices of domestic natural gas have been doubled, due to which PNG to PNG has become expensive. Due to the Russo-Ukraine war, many items ranging from edible oil have become expensive. Transporters have increased freight charges by 10 per cent due to expensive diesel. Inflation has also increased due to freight traffic.

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