Consumer Price Index March 2021 Data: The country has not even fully recovered from the havoc of the economic recession that the impact of inflation has started showing its effect. According to the data released today, the retail inflation rate (CPI) in the country increased to 5.52 percent in the month of March. In comparison, in the month of February, retail inflation increased by 5.03 percent. The average food price inflation of the entire country was 3.87 per cent in February, which increased to 4.94 per cent in March.
Ghee-oil, meat and fish prices increased the most
The biggest increase in food inflation has been due to increase in the prices of ghee-oil, meat and fish. Ghee-oil prices registered a 24.92 percent increase in prices and 15.09 percent in the prices of meat-fish in March. During this period, prices of pulses increased by 13.25 percent, eggs by 10.60 percent and prices of fruits by 7.86 percent.
Prices increased faster in cities than in villages
According to these figures released by the National Statistical Office (NSO) and the Ministry of Statistics and Program Implementation, the rate of increase in inflation has been more in the cities than in the villages. Then whether it is the prices of food or drink or the prices of other things. Food inflation in March was 6.64 per cent in urban areas and 3.94 per cent in rural areas. The prices of other things also increased at a speed of 6.52 percent in cities and 4.61 percent in villages. It is clear from these figures that if the inflation rate in the villages was not relatively low, then the average figure would have been even higher.
After two months of relief, inflation rate again increased
After the lockdown started due to Corona epidemic in March last year, inflation remained above the Reserve Bank of India’s target of 6 percent for the next several months. In October, the rate of increase in retail inflation reached 7.61 percent. In December 2020, after 8 months, the Consumer Price Index was reduced to 4.59 per cent. In January 2021, it came down further to 4.1 percent. But in February, the cycle of increase in retail inflation started once again and it has crossed 5 per cent.
Increasing inflation is a major hurdle in trying to overcome recession
The average retail inflation rate of the country in the month of March is within the scope of the Reserve Bank of India (RBI) target of 2 to 6 percent. But the continuous increase in it between February and March is a matter of concern. Especially because this increase in inflation is taking place at a time when the economy is constantly struggling to get out of the recession. The Industrial Production Index released today is a testimony to this fact. The Reserve Bank of India takes into account the Consumer Price Index while deciding its monetary policy. Obviously, due to the pressure of rising inflation rate, there will be no room for reduction in interest rates in front of him. Even if it seems necessary to do this to boost the growth rate and investment.