Inflation in India: Inflation hit, food prices increase drastically in one year

Posted on 10th Aug 2022 by rohit kumar

Inflation in India: There has been a tremendous increase in the prices of food and drink in a year. Despite the efforts of the government, the prices are not being controlled. Even the price of salt has gone up. Consumer ministry data shows that a year ago the price of rice was Rs 34.86 per kg, which has now gone up to Rs 37.38. Wheat has gone up from Rs 25 to Rs 30.61 while flour has gone up from Rs 29.47 to Rs 35 a kg.

 

Pulses also rise in prices

 

Arhar dal was Rs 104 a kg a year ago which is now Rs 108 a kg. Urad dal has increased from Rs 104 to Rs 107 per kg, masoor dal from Rs 88 to Rs 97 per kg, and milk from Rs 48.97 to Rs 52.41 per liter. According to RBI estimates, the rate of retail inflation will remain above 6 percent. The consumer ministry has called on oil companies and organizations several times to reduce oil prices. Companies say that they are continuously reducing oil prices. But in the open market, oil prices are still above Rs 150 a liter.

 

Quality certificate necessary for the export of flour, maida, and semolina, after the ban on the export of wheat on May 13, the export of flour increased

 

The Central Government has now made it necessary to approve the quality certificate for the export of wheat flour, maida, and semolina. A notification said that this approval will have to be obtained from the Export Inspection Council (EIC). Its major centers are in Mumbai, Chennai, Delhi, and Kolkata. After the ban on wheat exports was imposed on May 13, the export of flour, maida, and semolina suddenly increased.

 

There was apprehension that the availability of flour in the domestic market would be affected. This may also increase the prices. To overcome this, on July 12, the Directorate General of Foreign Trade (DGFT) also banned the export of flour, maida, and semolina. The approval of the Inter-Ministerial Group will be required for the export of these goods.

 

Attempts to reduce the prices of commodities

 

The government is constantly trying to reduce the prices of commodities. However, this year the prices are much higher as compared to last year. While the retail inflation rate (CPI) was 5.59 percent in July 2021, it stood at 7.01 percent in June 2022. It is expected to decrease marginally in July. Analysts believe that it may remain around 6.6 percent. The July data will be released on August 12.

 

Also Read: Inflation hit Bangladesh: Petrol and diesel prices increased by 52% for the first time since 1971, and angry people took to the streets

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