Why is RBI governor upset with burden of milk inflation?
The increase in milk prices and mobile tariff after the lok sabha elections in june 2024 has also troubled the Reserve bank of India, which is the regulator of the banking sector and is responsible for controlling inflation through monetary policy. This is the reason why after the meeting of the 50th Monetary Policy Committee of the Reserve bank of India, while giving information about the decisions taken in the meeting, RBI governor Shaktikanta Das said, there is a need to keep an eye on the impact of the increase in milk prices and mobile tariff.
Rise in milk prices increased RBI's trouble
As soon as the last phase of the lok sabha elections was completed on june 1, 2024, the results were not even declared yet that from Amul to Mother Dairy increased the price of milk by Rs 2 per liter. This made it seem that these dairy companies were waiting for the election to end to increase the price. As soon as the milk prices rose, the voters who had voted thinking that they will get relief from inflation after the formation of the new government, their hopes were dashed. Because inflation had become a big issue in the elections. The burden of inflation increased further on the common people due to the rising prices of milk. The rising prices of milk mean that all the food items made from milk, from cheese, curd, khoya, sweets, have become expensive.
RBI keeping an eye on the impact of mobile tariff hike
The limit was reached when in the last week of june, within two days, all the three big private telecom companies reliance Jio, Bharti airtel and vodafone Idea increased the mobile tariff by 25 percent. Both prepaid and postpaid tariffs became expensive, along with data also became expensive. In such a situation, consumers are now having to spend more money to recharge their mobiles. The increase in milk prices and mobile tariff has also troubled the RBI and this is the reason why the RBI governor is talking about keeping an eye on it.
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