{"id":184286,"date":"2022-05-13T20:00:14","date_gmt":"2022-05-13T14:30:14","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=184286"},"modified":"2022-05-14T11:12:22","modified_gmt":"2022-05-14T05:42:22","slug":"explained-whats-causing-high-inflation-and-where","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/explained-whats-causing-high-inflation-and-where\/","title":{"rendered":"Explained: What\u2019s causing high inflation and where?"},"content":{"rendered":"\n<p><strong>News<\/strong>: India\u2019s retail inflation rose by 7.79% in April, according to the latest data released by the Ministry of Statistics and Programme Implementation.<\/p>\n<p>Inflation in food items rose by even higher \u2014 8.38% in April \u2014 according to the MoSPI\u2019s Consumer Food Price Index.<\/p>\n<p>However, the biggest jump was registered in fuel prices, which rose by almost 11 per cent in April. This is a <strong>direct impact of the higher crude oil prices<\/strong> being passed through to the consumers in the wake of the war in Ukraine.<\/p>\n<h5>What is retail inflation and why it&#8217;s significant?<\/h5>\n<p>Retail inflation essentially refers to the rate at which the general price level went up in a particular month (April in the current instance) over what it was in the same month a year ago.<\/p>\n<ul>\n<li>The change is expressed as a percentage.<\/li>\n<\/ul>\n<p>Retail inflation also refers to the <strong>prices faced by consumers<\/strong>, and not the ones prevailing in the wholesale market.<\/p>\n<p><strong>Significance<\/strong>: The retail inflation level is the most important measure of inflation in India because <strong>it is this inflation rate that India\u2019s central Bank, the RBI, targets to maintain price stability<\/strong>. According to the law, the RBI is supposed to keep overall retail inflation between 2% and 6%.<\/p>\n<p>However, since the start of 2022, retail inflation has been <strong>trending above the 6% mark<\/strong> and there is a good chance that it may stay above the 6% mark for the first 9 months of the year. If that happens, the RBI will have to explain the slippage to the Parliament.<\/p>\n<p><strong>Source<\/strong>: This post is based on the article \u201c<strong>Explained: What\u2019s causing high inflation and where?<\/strong>\u201d published in <strong>The Indian Express<\/strong> on <strong>13th May 22<\/strong>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>News: India\u2019s retail inflation rose by 7.79% in April, according to the latest data released by the Ministry of Statistics and Programme Implementation. Inflation in food items rose by even higher \u2014 8.38% in April \u2014 according to the MoSPI\u2019s Consumer Food Price Index. However, the biggest jump was registered in fuel prices, which rose&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/explained-whats-causing-high-inflation-and-where\/\">Continue reading <span class=\"screen-reader-text\">Explained: What\u2019s causing high inflation and where?<\/span><\/a><\/p>\n","protected":false},"author":10328,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[216,10500],"class_list":["post-184286","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-gs-paper-3","tag-indian-express","entry"],"jetpack_featured_media_url":"","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/184286","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10328"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=184286"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/184286\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=184286"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=184286"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=184286"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}