Inflation rate reached the top of 5 months, then inflation made us cry; RBI will have to answer

Inflation Rate in India: Despite all the efforts, the inflation rate is not taking the name of decreasing. Retail inflation data was released by the government on Wednesday. Inflation rate has increased to 7.41 percent in September. This is the highest during the last five months. The special thing is that the inflation rate data has remained above the satisfactory level of 2 to 6 percent fixed by the Central Bank (RBI) for the 9th consecutive time.

A report will have to be given to the central government

Earlier, the retail inflation figure was 7 percent in August and 4.35 percent in September 2021. Inflation in food articles rose to 8.60 per cent in September from 7.62 per cent in August. RBI will have to submit a report to the central government if inflation exceeds 6 per cent. In this report, the RBI will have to explain why it failed to keep retail inflation in the range of two to six per cent.

Imported inflationary pressure eased

The Center has asked the RBI to ensure that retail inflation remains in the range of 2-6 per cent. Earlier, RBI Governor Shaktikanta Das had said that imported inflationary pressures have eased at the beginning of the current financial year.

US wholesale inflation at 8.5 percent

On the other hand, the wholesale inflation rate in the US increased to 8.5 percent year-on-year in September. However, inflation has come down compared to the previous month. It was 8.7 percent in August. According to the report released by the Labor Department, the price index for manufacturers increased by 0.4 percent in the month of September compared to August. Earlier, it had come down for two months.

The producer price index measures the price change before the goods reach the customers. The main reason for the price hike in September is the rise in hotel room rents. After two consecutive months of decline, the prices of food items have also increased in September as compared to August.