New Delhi: In the midst of a troubled economy, the retail inflation on Monday rose to about five-and-half year high of 7.35 per cent in December 2019. The inflation surpassed the RBI’s comfort level. It mainly happened because of the rising prices of vegetables with the prices of onion and tomato going high in the market.Also Read - Inflation Spike Led to Policy Rate Status Quo, Says RBI's Monetary Policy Committee
According to updates from the National Statistical Office (NSO), the increase in the retail inflation in the vegetable segment was 60.5 per cent in December as compared to last year. Also Read - Retail inflation Surges to 5.54% in November from 4.62% in October Amid Dwindling Economy
The NSO further stated that the overall retail inflation based on Consumer Price Index (CPI) was 2.11 per cent in December 2018 and 5.54 per cent in November 2019. Also Read - Wholesale Inflation Trickles Down at 0.33% in September
As per the data released by the NSO, the overall food inflation went up to 14.12 per cent in December as against (-) 2.65 per cent in the same month of 2018. The food inflation was 10.01 per cent in November 2019.
Prior to this, the high retail inflation was experienced at 7.39 per cent in July 2014. It happened in the year when PM Modi assumed office for the first term in the Centre.
As per the latest updates, the inflation in ‘pulses and products’ was recorded at 15.44 per cent, and in case of ‘meat and fish’ it was nearly 10 per cent.
In the wake of the rising inflation, the Central government has asked the Reserve Bank of India to keep it under control in the range of 4 per cent with a margin of 2 per cent on either side.