New Delhi: At a time when the GDP is 6-year low and the unemployment rate is 45 years high, the government data on Wednesday showed that the retail inflation has risen to 7.59 per cent in January. The retail inflation was 7.35 per cent in December. The retail inflation in December last year had surpassed the RBI’s comfort level.
The rise in inflation is caused due to high food prices, government data had earlier indicated. The retail inflation based on Consumer Price Index (CPI) was 2.11 per cent in December 2018 and 5.54 per cent in November 2019.
The government data earlier indicated that the food inflation rose to 14.12 per cent in December as against (-) 2.65 per cent in the same month of 2018. It was 10.01 per cent in November 2019.
However, the Central government earlier had asked the Reserve Bank of India to keep inflation in the range of 4 per cent with a margin of 2 per cent on the either side.
Commenting on the rising inflation, industry body PHD Chamber had earlier said the rise in inflation rate is not sustainable and the average inflation should remain at around 5.5 per cent for the current financial year.