At the time when fuel prices are soaring up day by day, the retail inflation came as a good news to the middle class and poor people by reporting a slight decline in June compared to the previous month May.
The Consumer Price Index (CPI) a parameter that measures the amount paid by the consumers for various commodities being more than 6 percent is a big area of concern given the fact that the lockdown restrictions have been eased in various parts of the country.
The CPI rate says, consumers had paid more money in order to get the required commodities like cooking oil, groceries, vegetables and other essentials.
Let us keep this in simple manner, before the hike in prices, a family with four members used to pay 3-4k per groceries, which costs more than 5k after the hike in prices.
The fuel prices should be seen as a culprit here which had resulted in the products and commodities we purchase. With the increase in transport charges, the product's price will increase.
However, the steady rise in prices of eggs, edible oils, fruits and pulses in June have pushed the food inflation to 5.15%. During the same period, fuel inflation went up by 12.7 percent.The increase in fuel prices had resulted in the growth of transport cost and communication services.
Despite the inflation rate coming down, the rate was reported higher than predicted by the Reserve Bank of India for the second month in a row.
June was a tough period for the middle class and poor people as the vegetable prices have come down by a mere 0.7 percent, which was reported at - 1.92 percent in May. The inflation rate concerning the Food and beverages was reported at 5.58 percent.
Experts are expressing their concerns over the rise in fuel prices, which have been going up since more than an year. The fuel price has a role in the inflation rate.
To be precise, the inflation in the urban areas stood at 6.4 percent, while the Rural inflation was reported at 6.2 percent.The rise in transport charges and obstacles in the supply chain are said to have impacted the inflation.