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LATEST NEWS UPDATES | Bharat fuelling retail inflation -Shishir Sinha

Bharat fuelling retail inflation -Shishir Sinha

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published Published on May 13, 2022   modified Modified on May 16, 2022

-The Hindu Business Line

Experts attribute it to higher cost of providing goods and services and more money under schemes

Retail inflation based on Consumer Price Index (CPI) for rural areas is higher than urban areas for four successive months with West Bengal, Madhya Pradesh, Telangana and Haryana recording double-digit rural retail inflation in April.

These are among the 17 States that witnessed higher retail inflation in rural areas. However, in Karnataka, Kerala, Bihar, Himachal Pradesh and Delhi, urban inflation beats rural inflation.

Steady uptick

An analysis of the inflation data shows retail inflation for rural areas surged to 8.38 per cent in April as against 7.66 per cent in March, and 3.75 per cent in April last year. Delving into rural inflation, research firm CareEdge underlined in a note that the spike in CPI inflation has been more pronounced in rural India as that basket gives more weightage to food items.

As a result, rural inflation has been outpacing urban inflation since January 2022. “This could have implications on rural demand, which is yet to show a healthy pickup. Urban inflation has also been inching upwards for the past two months, which reflects the building of core pressures in the economy,” the CareEdge note said.

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The Hindu Business Line, 13 May, 2022, https://www.thehindubusinessline.com/economy/17-states-record-higher-rural-retail-inflation-in-april/article65410632.ece


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