By Admin 
Retail Inflation News: The war between Iran and US has started once again, after which inflation has also started increasing continuously across the country. Data released by the government on Monday showed that retail inflation increased to 4.38% in June, which was 3.93% in May. The biggest reason for increase in inflation was the increase in prices of food items.
According to CPI i.e. Consumer Price Index, food inflation was 5.32% in June, whereas it was 4.78% in May. Which means that people had to spend more on food items than before.
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Government gave responsibility to RBI
In view of this increasing inflation, the government has now given the responsibility to the Reserve Bank of India (RBI) to maintain the inflation rate around 4%. However, if needed, inflation can be 2% up or 2% down (i.e. between 2% to 6%). This is like a big challenge for RBI. Due to food items becoming expensive, the pressure on the Reserve Bank of India to control inflation may increase.
What is the reason for increasing inflation?
The biggest reason for increase in inflation is the increase in prices of food, drinks and oil in the month of May. There has been a continuous increase in the prices of everyday items like vegetables, pulses, fruits, milk, due to which the inflation graph has also increased.
The increase in prices of petrol and diesel, especially due to tensions in the Middle East, is the biggest reason behind the increase in inflation. Due to increase in oil prices, transportation costs also increased. Which has affected other food items also.
Inflation may increase further?
Looking at the current situation, inflation is expected to increase further in the coming time. Because as long as this war in the Middle East continues, the prices of crude oil will also increase and this will make oil and gas expensive. So other food items will also be expensive.
However, not only the situation in the Middle East but also the monsoon can come as a culprit. Prices of fruits and vegetables increase in monsoon. There are problems in transportation due to which there is shortage of goods in the market. This is also a reason why the inflation graph keeps increasing even in this season.
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