“The conflict over Ukraine and the resulting rise in commodity prices has bleak the outlook for inflation in India, as in the rest of the world”
“The conflict over Ukraine and the resulting rise in commodity prices has bleak the outlook for inflation in India, as in the rest of the world”
The Reserve Bank on Friday warned that there is a risk of higher wholesale price inflation (WPI), which could put pressure on retail inflation, albeit with a lag.
In its annual report, the RBI said cost-push pressures from higher industrial raw material prices, transportation costs and global logistics, and supply chain constraints continue to impact core inflation.
“Substantial wedge between wholesale and retail price inflation amid sharp rise in inflation of manufactured products poses a risk of potential passthrough of input cost pressures to retail inflation, although the slowdown in the economy is muting the pass-through,” the central government said. The bank noted
conflict over ukraine And this Consequential Spike in Commodity Prices It said that like the rest of the world, inflation prospects in India have also reduced.
To control the rising prices, the government has recently Excise duty cut on petrol and diesel And also waived off import duty on certain raw materials used in the steel and plastics industry. In addition, export duty on iron ore and iron pellets was increased.
The rise in prices of all commodities from fuel to vegetables and cooking oil pushed wholesale price inflation or wholesale price inflation to a record high of 15.08% in April and retail inflation to an almost eight-year high of 7.79%.
High inflation prompts RBI to hold an unscheduled meeting Benchmark interest rate hiked by 40 basis points 4.40% earlier this month.