Retail inflation climbs to 8-year high: here's how daily items are getting more expensive
India Today
Prices of food and beverages rose 8.1 per cent in April 2022, compared to the same month last year. The inflation figures are now also being reflected in the retail prices of daily items in the market.
The Russia-Ukraine war, the Covid-19 pandemic, and mounting uncertainty have raised the prices of household items around the world, and India is no exception to it. Prices of food and beverages rose 8.1 per cent in April 2022, compared to the same month last year. Prices of housing, and clothing and footwear rose 3.5 per cent and 9.85 per cent respectively, according to the Ministry of Statistics and Programme Implementation.
"The surge in the CPI inflation has clearly justified the off-cycle rate hike last week, and significantly raised the likelihood of a back-to-back rate increase in June 2022," said Aditi Nayar, Chief Economist, ICRA.
We see a higher base softening the May 2022 CPI inflation print, although it will remain above 6.5 per cent, she added.
The inflation figures are now also being reflected in the retail prices of daily items in the market. Wheat now costs Rs. 29.35 per kg, 8.9 per cent more expensive than last year. The price of tomatoes more than doubled from Rs. 18.3 per kg to Rs. 39.26 per kg. Similarly, mustard oil and vanaspati oil prices rose 10.7 per cent and 28.7 per cent respectively, according to the Department of Consumer Affairs.
Overall, retail inflation in April 2022 climbed to an 18-month high of 7.8 per cent, which is the highest after October 2020. In the previous month, CPI-based inflation stood at 6.95 per cent.
“Inflation sensitive items relevant to India such as edible oils are facing shortages due to the conflict in Europe and export bans by key producers. The jump in fertiliser prices and other input costs has a direct impact on food prices in India,” RBI Governor Shaktikanta Das said on May 4.
He added that food inflation pressures are likely to continue.
