Inflation rate: Petrol, edible oil and petrol fueled the fire of inflation, now it will remain uncontrollable throughout the year

According to UBS Securities, retail inflation will be above 5 percent in 2021-22

Inflation rate in India: The trend of inflation in the country seems to be increasing. Both the retail inflation rate (consumer price index based) and the wholesale inflation rate have risen. In May, the retail inflation crossed 6.3 percent and the wholesale inflation based on the Wholesale Price Index reached 12.94 percent. Swiss brokerage house UBS Securities has said that the pace of inflation will remain in the country and its annual average rate will be 5 percent.

Inflation increased due to edible oil and protein items

The report said that edible oil and protein-rich items have increased the retail inflation rate to 6.3 percent in May. This is the top level of the last six months. This is out of the purview of RBI. Therefore, there is no hope of a cut in interest rates in the coming days. In the report of UBS Securities, it has been said that petrol prices have crossed the level of Rs 100. Due to this, the wholesale inflation crossed the record 12.94 percent. Crude oil has crossed $70 per barrel. At the same time, due to the increase in commodity prices, the prices of manufactured goods have also increased.

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Retail inflation will be out of control of RBI

Retail inflation based on the Consumer Price Index (CPI) stood at 4.3 per cent in April, while it rose to 6.3 per cent in May. This is the top level of six months. During this, the food inflation increased by 1.96 to 5.01 percent. Earlier in November 2020, retail inflation had reached a high of 6.93 percent. Wholesale inflation had fallen to -3.37 percent in May 2020, but it increased to 10.49 percent in April 2021. UBS says that retail inflation will be more than the RBI’s medium-term target of 4 percent. In the financial year 2021-22, it will be an average of 5 percent.