The recent news came up when the government data was analyzed on Thursday and found that inflation rate is increased to 5% in the month of June. The most common cause for the high inflation rate in June is the accelerated prices of petrol and diesel and the depreciation in the value of rupee.
When the expert’s results examined the whole data of the inflation came out and stated that in the month of June the price index of consumer reaches 5.30%. Which is only recorded as 4.87% in May.
The central bank of India, RBI has set the medium term of inflation at 4%. From the last eight months, RBI fails to achieve the target they set.
Statement of experts
Abhishek Upadhyay who is the senior economist; shares his views on the increase in inflation and he said that inflation is increased at the rapid rate. The rate at which it hikes surprised everyone. The leading cause behind the increased rate of inflation is high prices of food especially the hike in the price of vegetables.
Providing high MSP to farmers who were recently decided by the government. Very soon the impact of high MSP can also put their effect on inflation.
As expected the inflation may come down in the month of October. Till then it’s the foremost duty of the Central bank to correct inflation by using qualitative and quantitative measures.
Statement of Tushar Arora
Tushar Arora who is the senior economist at HDFC bank said that it’s the 8 months when the inflation is far above than the expected rate of the central bank. Core inflation is hiked at the rapid pace for which the RBI has more worried. The increase which was recorded at 5% in the month of June, and expected to be like this only in the month of July and August.
Statement of Garima Kapoor
Garima Kapoor, she is the economist and vice president at Elara Capital; she stated that RBI has to take bold decisions for the context of depreciating rupee. Apart from this RBI has to change its forecast for the month of August because the high MSP declared by the Indian government will put their impact on the rate of inflation.