Center's first question to RBI - Why are prices not coming under control? Except for six things, the price of everything else increased
RBI: According to the data, the rate of retail inflation was highest in West Bengal, Telangana, Madhya Pradesh, Maharashtra, and Andhra Pradesh. In these states, this rate ranged from 8.06 percent to 9.44 percent.
Despite all the efforts of the bank OF INDIA' target='_blank' title='reserve bank of india-Latest Updates, Photos, Videos are a click away, CLICK NOW'>reserve bank of india (RBI), inflation is above the satisfactory level for the 9th consecutive month. Now he will have to give a report to the central government and explain the reason in detail. The report will have to explain why inflation could not be kept within the prescribed limits and what steps are being taken to bring it under control.
Notably, this will be the first time since the monetary policy framework came into effect in 2016, the RBI will have to inform the government of its steps through a report. Here, according to the National Statistical Ministry (NSO), the prices of only 6 items have decreased in september as compared to August.
The RBI has been entrusted with the responsibility of maintaining retail inflation at 4 percent with a variation of 2 percent. Under the Reserve bank Act, if the inflation target has not been achieved for three consecutive quarters, the RBI is required to report to the central government.
Retail inflation rose to 7.41 percent in september due to costlier food items. This is its five-month high since april this year. At that time, inflation based on retail prices (CPI) stood at 7.79 percent. According to data released by the National Statistical office on Wednesday, the rate of retail inflation remained above the RBI's upper limit of 6 percent for the 9th consecutive month in September. It was 7 percent in august and 4.35 percent in september last year. Inflation in food articles rose to 8.60 percent in september from 7.62 percent in August. The central government has given the RBI a target to keep retail inflation in the range of 2 to 6 percent.
Industrial output declined by 0.8 percent in august due to weak performance in the manufacturing and mining sectors. It fell to an 18-month low. Earlier, in february 2021, industrial production declined by 3.2 percent. The Index of Industrial Production had grown by 2.2 percent in July this year and 13% in august last year.
Retail inflation rose to 7.41 percent in september, which was higher than expected. Experts had predicted maximum retail inflation of 7.30 percent. According to the National Statistical Ministry (NSO), prices of only 6 items have decreased in september as compared to August.
At the same time, prices of all other commodities have seen a rise. Because of this, retail inflation in september was higher than expected. madan Sabnavis, Chief Economist, bank of Baroda said, “The chances of inflation coming down shortly are slim as there is less production in Kharif. Especially the production of rice, pulses, and oilseeds has been affected more this time.
click and follow Indiaherald WhatsApp channel