Urban-rural retail inflation gap widens
Top Searches
Urban-rural retail inflation gap widens
TNN / Updated: Apr 17, 2021, 11:13 IST
FacebookTwitterLinkedinEMail
NEW DELHI: The retail inflation data for March showed the gap widening between urban and rural inflation, piling pressure on urban households as prices of commodities such as edible oils, meat, fish and eggs soared.
Since last December, the gulf has been widening which economists attribute to several factors, including the composition of the basket in both areas. The retail inflation data showed urban inflation soared 6.5% in March, while rural was at 4.6%. Since January last year up to December, rural and urban inflation were almost at similar levels and in some months rural inflation was a step ahead of urban.
Most States expect their growth to be better than the all-India rate this fiscal
thehindubusinessline.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from thehindubusinessline.com Daily Mail and Mail on Sunday newspapers.
India s millennials have been hit hard by the Covid recession
newstatesman.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from newstatesman.com Daily Mail and Mail on Sunday newspapers.
America s $1.9 trillion rescue package could throw a spanner in RBI s recovery plans
SECTIONS
Share
Synopsis
In India, the government is following a borrow-to-grow strategy but the RBI, while helping keep the government’s borrowing cost low, is geared to keep inflation under control. The contradictory impulses would be tough to balance.
Agencies
Rural fuel inflation rate since February 2020 averaged only about 1% but urban fuel prices rose at a rate of about 7%.
The government will soon give the Reserve Bank of India (RBI) its inflation target for five years beginning April 1. The RBI, which is an inflation-targeting central bank, is currently tasked with keeping retail inflation at 4%, with an upper and lower tolerance limit of 2 percentage points. The central bank has indicated that it would prefer to continue with that target for the next five years as well.