Inflation figures for the month of June have been released yesterday. These figures clearly show that the challenges facing the Indian economy have not diminished yet. Inflation rate in India in the month of June has been 6.26% which is 0.04% less than last time. In the last Maha Bharat, the inflation rate was 6.30%.
Inflation has emerged as another challenge before the Indian economy. The solution of which is no longer visible even with the Reserve Bank of India. However, the Reserve Bank of India has expressed concern about rising inflation. And for this the Government of India has been advised to reduce the price of petrol and diesel. However, the central government does not seem to be accepting the advice regarding reducing the prices of petrol and diesel.
Inflation rate in the previous month was 6.30%. It has now seen a slight decline and has stabilized at 6.26%. You can also understand it in such a way that inflation is neither big nor low. It is almost stable. The same experts say that the inflation rate is still not showing the picture of the real economy and a lot of improvement should be done in it.
Inflation rate lower than expected
Experts are watching this slight fall in the inflation rate with enthusiasm. However, we have seen almost no change in the inflation rate in the data. But experts say that the inflation rate in India has been lower than expected. At the same time, some important decisions affecting inflation have been taken after releasing the data. In such a situation, the inflation rate may increase in the future.
Let us tell you for information that most of the agency had estimated 6.9% for the inflation rate in India. So it is less than expected. This is being seen as a positive benchmark for the Indian economy.
Inflation is a matter of concern for Reserve Bank of India
One more thing is not necessary to understand about the inflation rate. The bench mark set by the Reserve Bank of India for inflation rate. It is much more than that. The Reserve Bank of India has set a target for inflation in India to be between 4 and 6%. It has gone above that. In such a situation, the concerns of the Reserve Bank of India have not yet subsided.
However, one advantage will be that in the coming Maha, the Reserve Bank of India will not increase the interest rates. With no increase in interest rates, Indian industries will be able to take a larger amount of credit and run their industries easily.
However, there has been an increase in retail inflation. Which affects the common consumers of India the most. Retail Inflation is the price at which we get the goods. The last Great Retail Inflation in India was 5.1%. Which increased this huge to 5.15%. This is bad news from the point of view of ordinary consumers.
Why high retail inflation rate in India
Retail inflation has increased in the month of June as compared to the month of May. Which is a matter of concern for Indian consumers. But experts give several reasons for this. Experts say that the rise in the prices of edible oils and rising prices of petrol and diesel has affected the retail inflation rate.
A 20% increase in freight rates has been registered due to rising prices of petrol and diesel. This directly affects the retail inflation rate. The Reserve Bank of India is constantly telling the government that the government should keep the prices of petrol and diesel low. Which the government is not doing. Currently, petrol prices in India have crossed ₹100 per liter across the country. In some cities of India, the price of petrol has gone up to more than ₹ 110 per liter. At the same time, diesel prices have also exceeded ₹ 100 per liter in some cities of India.
In such a situation, the retail inflation rate may increase even more in the coming times. At the same time, the increased milk prices are not included in this inflation rate. Recently, the price of milk in India has been increased by ₹ 2 per liter. In such a situation, the increase in inflation rate in the coming Maha can be even more. And it can be around 7%. Which is a matter of concern.
However, the prices of fruits and vegetables were seen in the minus and it went down from 0% to -0.7%. This will benefit the consumers. But farmers cultivating fruits and vegetables will be directly harmed by this. For information, let us tell you that agriculture in India is already a loss-making deal. And if the prices of fruits and vegetables continue to fall in this manner, the problems of Indian farmers will increase even more.
Food inflation has been affected the most by oil and edible oil. Both have registered an increase of about 12%. This has increased the food inflation rate. In the coming time, if the supply of edible oil and pulses is not smooth, then it can see even more growth.
The same news has come recently that this time the sowing of crops has decreased as compared to the last time. In such a situation, the prices of edible oils and pulses may increase. The sowing figures which have been released by the government. According to him, the area under sowing crop this time has decreased by 10% as compared to last time. This is due to the delay in monsoon. For information, let us tell you that this time the monsoon is running late by 10 to 15 days across the country.
Factors Affecting Inflation Rate in India
Now it is a matter to understand here that, what factors affect inflation in India? In India, the inflation rate is the highest put edible oil and petrol affects the diesel prices.
Every year India imports edible oil and petrol and diesel in large quantities from abroad. Due to this, the inflation rate in India goes out of the control of the government. Petrol diesel is imported in India and it is about 82%. Recently, India’s Road and Highways Minister Nitin Gadkari had said that India spends more than 800,000 crores on the import of petrol and diesel every year. Which is a matter of concern.
India is also not self-sufficient in edible oil and pulses. At present, the price of edible oil has reached above ₹200 per litre. Which used to range from ₹ 60 to ₹ 80 per liter under normal circumstances. However, there is a slight decline in this now. But this fall will be around for a long time! That can’t be said! Experts say that the food inflation rate may increase even more in the coming days. The prices of petrol and diesel are increasing continuously and there is no stopping it now.
The cost of freight in India has gone up by 20% due to rising petrol and diesel prices. Let us tell you for information that at this time the price of crude oil has reached above $ 75 per barrel in the international market. Which is the highest since 2018. Experts of the same petroleum industry say that in the coming time, the prices of crude oil can go above $ 85 per barrel internationally. If this happens, then another round of inflation can be seen in India.