Inflation Increasing : The skyrocketing prices of petrol and diesel led to the inflation of edible oil, grains and vegetables. Inflation) has started increasing. In a report by Care Ratings, it has been said that the inflation of petrol and diesel affects both wholesale and retail inflation. Expensive petrol and diesel increases the cost of transport. Freight and logistics expenses increase and everyday things start getting expensive. If the price of the commodity increases due to expensive petrol and diesel, then it can prove to be very harmful.
The freight rate has increased by ten and a half percent
It has been said in the report that the increased prices of petrol, diesel and gas dominate the market. The market is seeing inflation rising. This has also affected the bond market and the yield curve has stabilized. It said that the freight rate was stable since March 2016 but it is increasing due to expensive diesel. According to CMIE data, the freight index has increased by 10.5 percent. This is a very important matter because the rising cost of freight starts reflecting on the cost of everything. The prices of all the goods that are transported by road are affected by this.
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The crisis will deepen due to increase in retail inflation
The prices of cereals, vegetables, raw materials, edible oil and milk are increasing continuously due to increase in freight rate. The biggest concern is about rising commodity inflation as it affects retail inflation. This is the reason why the prices of agricultural products, especially vegetables, are increasing due to the increase in the transportation rate. Now more money is being spent in transportation from major mandis to mandis of different areas. This is the reason why the prices of fruits and vegetables have gone up a lot. Therefore, it is necessary that the central and state governments together take a decision to reduce the tax on petrol and diesel. However, the rate cut should be done in such a way that the revenue of the states is not affected much. Petrol and diesel prices have increased 36 times since May 4.