No respite from high-prices and inflation can be seen anywhere around. According to statistics which came out on Wednesday, the Consumer Price Index (CPI) inflation rate touched 7.41% in the month of September, which was 7% in August, and this is the highest after the month of April this year, which was 7.79%. Last year, the rate in September was 4.35%.
Prices have risen for three months straight now and for nine months now, has been above the limit of 6% set by the RBI. In the month of September, the rates of vegetables went up by 18%, those of condiments, 16.8%. A rise of 8.41% was recorded in the rates of food and beverages, and for fuel and energy, the rise was 10.39%. In the meantime, the rates of food items have increased both in urban and rural areas.
As the inflation rate is above 6%, the RBI will have to present a report to the central government, stating why the central bank was unable to keep the inflation rate between 2 and 6%. Meanwhile, the American agency, S&P Global Ratings has said that till March 2023, inflation rates will continue to remain high in India. It added that till March, the inflation rate can remain 6.8%, while during 2023-24, there is a probability that it will go down to 5%.
On the other hand, in 2024-25, retail inflation rate can further go down to 4.5%.