Inflation rises sharply in the country; At the peak of five years ...

India's inflation rate rises sharply Retail inflation rose to 7.35 per cent in December. The Reserve Bank of India has crossed the 5.54 per cent mark in November and reached 7.35 per cent. This is the highest inflation since July 2014. In July 2014 it was 7.39 per cent. The country's economy is facing a slowdown. 

Inflation is mainly on account of rising prices of food items, including vegetables. According to the National Statistical Report, food inflation rose to 14.12 per cent in November from 10.01 per cent in the previous month. Vegetable prices soar from 36 per cent to 60.5 per cent.

Retail inflation, based on the October Consumer Price Index (WPI), stood at 4.62%. The rise in inflation was mainly driven by rising food prices, including vegetables. Due to heavy rains and delaying the harvest, the prices of most vegetables have gone up last month.  This is the highest level in 15 months. The RBI had set a target of four per cent. Inflation rose to 4.62 per cent in January. Inflation was at 3.99 per cent in September.

 

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