In April, the retail inflation of India has risen to eight year high amid the rising prices of food and fuel. India’s retail inflation standing at 7.79% is the result of sharp rise in cooking gas, food and fuel prices. It has been promised by the government to reduce the impact of inflation on the common man.
In a row, this is the fourth month where the inflation is above the RBI’s upper target limit of 6%. The Parliament has mandated the Reserve Bank of India to keep the inflation under 6%. If the RBI fails to keep the inflation below 6% till nine months in a consecutive manner, then it will have to explain it to the government as to why it couldn’t control the price rise. It will also have to give out a plan in bringing the prices in line.
In the past one month, there has been an increase in diesel prices by 10%, and petrol prices have gone up nearly by 9%.
