Indian inflation rate breached RBI’s comfort mark

Indian inflation rate breached RBI’s comfort mark

Team Ambitiousbaba are here with a Current Affairs Special Series. In this series, candidates will be introduced to current affairs topics daily, which will not only improve their general awareness but also will ensure that the candidates do not lack in any current affairs topic. Today’s Current Affairs topic is “Indian inflation rate breached RBI’s comfort mark

The Ministry of Statistics and Programme Implementation has released data which indicates that India’s benchmark inflation rate which measured by the Consumer Price Index (CPI) grew to 6.01 per cent year-on-year in January 2022. The numbers of January has clearly breached RBI comfort zone.

Retail inflation was recorded at 5.66 % in December and 4.91 % in November 2021. Reserve Bank of India Governor Shaktikanta Das had mentioned previously January 2022’s consumer price index would be closer to the upper tolerance band because of adverse base effects.

Rise in various consumer usage:

  • The increase in the food basket had done because of a sharp rise in prices of oils and fats.
  • Prices of oils and fats were gone up 70 per cent on year in January.
  • Even the meat and fish prices have also seen a rise of 47 per cent and prices of vegetables grew up 5.19 per cent while pulses and products heightened to 3.02 per cent.
  • Apart from food and beverages, the fuel and light segment grew 9.32 per cent, clothing and footwear went up 8.84 per cent and the housing segment rose to 3.52 per cent.

Reserve Bank of India expected in its recently concluded monetary policy meet that inflation based on consumer price index (CPI) would be well below its upper tolerance level around to 4.5 per cent in the next fiscal year beginning April 2022.

The central bank maintained its inflation projection at 5.3 per cent for the current financial year.

Question & Answer:

Q1. Consumer Price Index has been calculated at how much percent in January 2022?

Ans. 6.01%

Q2. What is the RBI’s comfort zone (benchmark rate) of inflation rate of CPI?

Ans. 4% to 6%

Q3. Which is the main reason for breaching RBI’s benchmark rate of inflation in January 2022?

Ans. Adverse base effect is the major reason while increase the prices of foods, oils and vegetables are other reasons for this.

 

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