The RBI’s unscheduled hike in repo rates on 5 May confirmed that the central bank was behind the curve in controlling inflation and now new data released by the National Statistical Office on 12 May shows exactly how behind.
Retail inflation in India soared to its highest since May 2014 to 7.79 percent in April, almost double the RBI’s mandate of 4 percent and above the bank's estimates for the fourth straight month.
Here are a few numbers to indicate the current state of inflation: food price inflation is at a 17-month high of 8.38 percent, rural inflation is at a staggering 8-year high at 8.38 percent and urban inflation at 7.09 percent is at its highest in 18-months.
While the war in Ukraine and consequent rise in fuel prices is a significant factor in the spike, April's high inflation, according to media reports, is not one-off.
So what is driving this inflation? who will be pinched the most, and what corrective measures can the central bank implement to control inflation?
To understand this, I spoke to Pallavi Nahata, Associate Editor of Economy at BQ Prime.
Host and Producer: Himmat Shaligram
Editor: Shorbori Purkayastha
Music: Big Bang Fuzz
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