The inflation in the month of August is surged to 7%
It is the eight consecutive month when the inflation rate is higher than the maximum threshold limit set by the Reserve Bank of India. The inflation in the month of August resurged to 7 percent which is higher than the previous month. In the month of July ,the inflation was measured to the rate of 6.71%. The 7% high inflation rate is fuelled by the surge of food prices across the country which is at 7.26%.
Another major concern is that the industrial growth in the month of July was lowered to 2.4% which is the lowest since April. This problematic uptick in the inflation rate across the country is dampening the growth of the economy and failing every effort of the responsible authorities. The threshold limit of the inflation is measured by the Reserve Bank of India which is at 6% and the lowest limit is 2%. But it has been encountered that the inflation rate from the last eight months is higher than the maximum threshold limit.
The high inflation and slower growth of industrial output will be the two major concerns for the upcoming Monetary Policy meeting which is scheduled to be held at the end of this month.
The rural inflation rate in the month of July was 6.8% but the month of August has faced a rise in the rural inflation rate which is 7.15% and it is higher than the urban Inflation rate across the country in the month of August. According to the official data, the urban Inflation rate in the month of July stayed at 6.49% whereas in the month of August it is 6.72 %.
According to the economist, the high inflation is due to the hike in the prices of food items such as cereals, milk, pulses, fruit , vegetables, prepared meals etc. The hike in food prices has made the rural segments of the country under stress whereas the industrial growth is also lowering.
Inflation in some categories:
The food price index in the rural areas surged to 7.6% in the month of August and in the urban areas it is 7.55%. The price of cereals is also high in the month of August as compared to the previous month from 6.9% to 9.6%. It is a disturbing data with the aspect of economic growth of the country.
The inflation of vegetables also occurred. It is at a high level of 13.23% in the month of August with an uptick as compared to the previous month at 10.9%. According to the economist, the uneven monsoon is one of the major reasons for the food price hike.
West Bengal recorded the highest inflation rate of 8.94% in the month of August as compared to other 22 states where the inflation rate is around 7%.
The Reserve Bank of India and other responsible authorities need to rethink about the steps and precautions to prevent further inflation across the country. The prediction of the inflation rate in the month of September is 7.1% which is a major concern.
Questions And Answers:
Q1. What is the inflation rate in the month of August?
Ans. 7 %
Q2. Which state has recorded the highest inflation rate in the month of August?
Ans. West Bengal
Q3. What was the inflation rate in the previous month?