20 MAR,2022 | MEDC
Retail inflation has inched up to an eight-month high in February 2022, while wholesale price inflation remained in double digits for the eleventh consecutive month. This is posing a policy challenge for RBI, which is battling rising price pressures against the backdrop of the Ukrainian crisis. Rural inflation is higher than urban inflation, and leading the price rise are fuel and power, and non-food articles. Global value chains have been disrupted by the Ukrainian crisis, and that has led to soaring inflationary pressures worldwide, including in India. From crude oil to metals to fertilizers, prices have surged and are expected to rise even further depending on the events unfolding in Ukraine. The ball is now in the court of RBI and experts are expecting a revision in the inflation forecast as well as the official stance in the April policy of the Central Bank. Controlling inflation has to remain a top policy priority in India.
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