News Karnataka
Thursday, October 06 2022
Markets

Retail inflation up due to high food prices, base effect: Centre

Photo Credit : IANS

New Delhi: As retail inflation rose to 7 per cent in August from 6.71 per cent in July, the Finance Ministry said late on Monday that consumer price index (CPI) based inflation “recorded a moderate increase”, adding that it could be attributed to “both an adverse base effect and an increase in food and fuel prices – the transient components of CPI inflation”.

It added through a series of tweets that core inflation calculated by excluding the transient components of CPI like “food and beverages” and “fuel and light” was recorded at 5.9 per cent in August, and thus remained below the tolerance limit of 6 per cent set by RBI for the fourth consecutive month.

“Prices of major inputs like iron ore and steel have sobered in the global markets. This coupled with the measures taken by the government to rationalise tariff structures of inputs to augment domestic supply has helped to keep cost push inflation in consumer items under control,” the ministry said.

Despite erratic monsoon and negative seasonality in vegetable prices, food inflation in August was still lower than the April peak of the current year.

With global inflation pressures, inflationary expectations remain anchored in India with stable core inflation, the ministry said on an optimistic note.

“IIM-Ahmedabad’s One-year Ahead Business Inflation Expectations Survey in July has declined by 34 bps to 4.83 per cent from 5.17 per cent in June. Inflation expectations have fallen below 5 per cent after 17 months,” it said in another tweet.

“To soften the prices of edible oils and pulses, tariffs on imported items have been rationalised periodically and stock limits on edible oils have been kept, to avoid hoarding,” the ministry said while listing the measures taken to curb prices of essential commodities.

Inflation in “oils and fats” and”pulses and products” have moderated to 5.62 per cent and 2.52 per cent, respectively, the Finance Ministry pointed out.

“The government has prohibited exports of food products like wheat flour/atta, rice, maida etc. to keep domestic supplies steady and curb rise in prices. The impact of these measures is expected to be felt more significantly in the coming weeks and months,” it said.

Read more:

Athens: PM announces measures to tackle energy crisis, inflation

The Hague: Inflation in Netherlands hits record high

 

Share this:
MANY DROPS MAKE AN OCEAN
Support NewsKarnataka's quality independent journalism with a small contribution.

How useful was this post?

Click on a star to rate it!

Average rating 0 / 5. Vote count: 0

No votes so far! Be the first to rate this post.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Leave a Reply

Your email address will not be published.

Visit 7Jackpots and find the best online casinos in India! Play the most popular casino games for real money!

Find the best odds at 10Cric and ipl betting 2021! Signup today and get up to a 100% deposit bonus.

To get the latest news on WhatsApp