Consumer goods to get more expensive, Inflation increased from 3.15% to 7%
New Delhi: The main reason for the increase in inflation is the rise in prices of cereals, pulses, vegetables and meat and fish. In the SBI report, it has been told that the inflation figure will be seven percent or above in August.
The main reason for rising inflation is the rise in prices of cereals, pulses, vegetables and meat and fish.
New Delhi: State Bank of India (SBI) released a report saying the retail inflation rate (CPI-Consumer Price Index) will now come down to four percent only after December.
According to the report, the boom in this time is because of the breakdown of the supply chain due to coronavirus. The prices have also increased due to heavy purchases made by the government.
The latest report of SBI EcoRAP has stated that the inflation data based on the Consumer Price Index of August will remain at 7 percent or above.
Retail inflation was 6.93 percent in July as compared to 3.15 percent in July last year. This rise in inflation is mainly due to increase in the prices of cereals, pulses, vegetables and meat and fish.
SBI’s report said, “We believe that the inflation will remain at 7 % or above from August. The inflation can decrease upto 4% only in December or thereafter.
Inflation Rate –
When prices of goods or services in a country are higher than normal, then this situation is called inflation. Purchasing power per unit decreases as the prices of goods rise. Many decisions of financial and monetary policies in India are made by the government on the basis inflation rate.