Business & Finance

Retail Inflation At 7.01 Per Cent In June; Above RBI’s Tolerance Limit For Sixth Straight Month

Retail Inflation
The retail inflation, measured by the Consumer Price Index (CPI), marginally eased to 7.01 percent in June.

Mumbai: The Retail Inflation, which is measured by Consumer Price Index (CPI), in India during June stood at 7.01 percent, which is almost the same as compared with 7.04 percent in May. This is the sixth consecutive month that the inflation is above the RBI’s tolerance limit of six percent. Inflation in rural areas stood at 7.09 percent during June 2022, while that in urban areas was 6.92 percent.

However, this is the second consecutive month that has seen a slight easing in inflation as compared to the previous month. The inflation in April had stood at 7.79 percent, which fell to 7.04 percent in May and now to 7.01 percent in June.

The core inflation, which excludes food and fuel segments, stood at 6 percent in June. The food inflation was at 7.75 percent in June, compared with 7.97 percent the preceding month.

RBI has raised interest rates by 90 basis points (bps) so far this year to 4.9 percent and is set to add more in the coming months. RBI Governor Shaktikanta Das said that inflation may not fall within the top end of its mandated target band until December this year.The Reserve Bank factors in the retail inflation print in its bi-monthly monetary policy. The government has tasked the central bank to ensure inflation remains at 4 per cent with a margin of 2 per cent on either side.

However, the number has remained above the Reserve Bank’s comfort zone of 2-6% for the sixth consecutive month. The RBI will have to explain the reasons to the government by writing a letter if it stays above 6% for one more quarter.
The downward trend in inflation can also be attributed to excise duty cuts on petrol and diesel along with imposed restrictions on food exports. However, this decline is anticipated to be transitional as food prices are rising at an unprecedented rate on the back of unexpected heatwaves.Surging global commodity prices due to the Russia-Ukraine war and high crude oil prices have kept inflation above RBI’s 6 percent upper tolerance range.
The RBI, in its monetary policy announcement last month, had projected India’s inflation to start easing from October. It is trying to keep the monetary tightening to a minimum, as back-to-back price hikes might tumble the economic recovery.

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“Muslims Using Most Contraceptives”: Owaisi Hits Back At Yogi On His Remarks Over ‘Population Imbalance’

Sakeena Sayyed
Population
The country’s demographic dividend is the best among all countries, the total fertility rate has fallen to 2.3 from 2.6, says AIMIM Chief.

Mumbai: Hyderabad MP Asaduddin Owaisi on Tuesday said hit out at Uttar Pradesh chief minister Yogi Adityanath over his comments on population imbalance among religions.” The total fertility rate which was at 2.6 percent in 2016, had now fallen to 2.3 percent”, he said.

A day ago Uttar Pradesh Chief Minister Yogi Adityanath said it was important to ensure that efforts to control the population did not result in “population imbalance” between religions. He said, “In the countries where  the situation of population imbalance arises, it affects the religious demography, and after a while, chaos and anarchy start taking place.”

CM Yogi further added, “It should not happen that the percentage of population growth of any one class is more while we work on population control with awareness on the ‘mool nivasi’ (native residents). People should be made conscious to control the population through efforts of stabilization, to stop the situation from getting worrisome.

Countering this, the AIMIM Chief said, “Are Muslims not natives of India? If we see the reality, natives are only tribals and Dravidian people. In UP, without any law, desired fertility rate would be achieved by 2026-2030.”

“Their own health minister said that no law is needed in the country for population control. It’s Muslims who’re using most contraceptives. The total fertility rate which was 2.6 in 2016 is now 2.3. The country’s demographic dividend is best among all countries,” the AIMIM chief further added.

 

 

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