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India’s Retail Inflation Skyrockets Due to High Food Prices

Retail inflation in India has been hovering over the 6 percent tolerance limit of the Reserve Bank of India for quite some time now, owing to supply side disruptions caused by the COVID-19 pandemic.  
Sputnik

In what may deepen the pain of the pandemic, inflationary pressure seems to be rising unabated in the Indian economy.

According to government data issued on Monday, retail inflation in India grew 7.34 percent in September, mainly on account of higher food prices.

The retail inflation based on the Consumer Price Index (CPI) in September this year is almost double compared with 3.99 percent in September last year.

The retail inflation rate was 6.69 percent in August this year and 6.73 percent in July of this year.

In September, a number of staple products witnessed price inflation over the same month in the last year, including vegetables (20.73 percent, meat and fish (17.60 percent), pulses (14.67 percent), and eggs (15.47 percent). 

Consumer Food Price Inflation is up at 10.68 percent in September over 9.05 percent in August this year.

High inflation in the economy curtails the ability of the Reserve Bank to lower lending rates and stimulate economic growth. 

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