Retail inflation may rise to 7.30 percent in September due to abnormal rains and a rise in food prices. This will be a five-month high of retail inflation since April this year.
With this, it will be the 9th consecutive month that inflation based on retail prices will be above the RBI's upper limit. In August it was 7 percent. A survey of 47 economists claimed that the price of daily consumption items such as cereals and vegetables has been rising continuously for two years due to supply constraints and abnormal rains due to Russia's invasion of Ukraine. The poor and middle-class people already facing economic setbacks due to Corona will be further affected by this increase as they spend a major part of their earnings on food. The government is likely to release retail inflation data on October 12.
Prices of cereals and pulses raised concern
CRISIL Economist Dharmakirti Joshi said the rise in food prices has put pressure on the retail inflation front. It is a matter of concern that the inflation of cereals and pulses, which have been falling for a long time, will increase at an unprecedented pace.
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