15 JUNE 2021

CONSUMER PRICE INCREASED                                  DATA RELEASED BY GOVERNMENT

In May 2021, the Retail Inflation marked a six month high of 6.3 percent in the country.

The high rate of inflation is due to the escalating prices of petrol and diesel, other petroleum products, edible oils and other manufactured products.

The food inflation also increased significantly from 1.96 percent to 5.01 percent  in the month of May 2021.

The inflation in the fuel and light stood at a higher rate of 11.58 percent compared to 7.91 percent in April, last month.

Consumers in the Urban and Rural areas experienced an inflation of 11.58 percent for fuel & light and the food articles reported a surge of 5.1 percent from a low of 1.96 percent during the second phase of Covid-19 in May 2021.

The Rural areas experienced inflation of 6.48 percent than the 3.75 percent in April this year keeping life more miserable during the pandemic. 

 In the Urban area the inflation rate increased from 4.7 percent to 6.04 percent. 

 The Price data were collected from representative and selected 1114 urban markets and 1181 rural villages covering all States and Union Territories through personal visits by officials of NSO, Government of India on a weekly basis.

RBI has revised the inflation estimate to 5.4 percent with a growth rate of 9.5 percent for the financial year 2021-22.

 The Monetary Policy Committee (MPC) of the RBI kept the repo rate unchanged for the sixth time in a row at 4 percent considering the inflation data.

Consumer Price Index (CPI) measures the average change in prices of goods and services that consumers usually pay during a specified period. It is widely used to measure inflation as an economic indicator.