Amid the increasing coronavirus, the rising inflation has made life miserable for the common man. Household budgets have been hit hard by increases in the prices of edible oils, pulses and other groceries for the past few months.
According to data from the National Statistical Office (NSO), “the retail inflation rose to 6.3% in May, which is the highest in six months as prices of food items like edible oils, fruits, eggs and pulses have increased.
Sharp rise in inflation for 5 months in a row
According to the Wholesale Price Index (WOI), inflation has climbed up to 12.94 % in May. This is happened due to the increase in the prices of crude oil and manufactured goods and covid induced lockdown.
In November 2021, the highest retail inflation was 6.93% and in May 2020, the wholesale inflation was at a negative 3.7%. Meanwhile, in April 2021, it has reached a double-digit figure of 10.49%. This is the fifth month in a row in which the wholesale inflation rate has taken a surge.
What has become more expensive?
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Edible oils
Over the last year, sunflower oil has witnessed a surge of over 50% across metros, especially 77% in Kolkata. Meanwhile, Mustard oil, palm oil and other edible oils cost at least 30 percent more.
Pulses
Similar to edible oil, pulses too, have witnessed an increase in prices. Gram dal and tur dal have increased by 25 percent and 24 percent in Kolkata and across the country.
Other edible items
Prices of edible items like, meat and fish, eggs, fruits and other related products have been increased by 9.03%, 15.16%, and 11.89 % respectively on an annual basis. Fruits have become at least 12 percent costlier, meanwhile, eggs and soft drinks prices have shot up by 15%.
Fuel
Fuel prices have increased by 38 percent in May from 20.94% in April. The inflation in the fuel and power category has witnessed a surge of 11.58%, with the rapid rise in prices.
Also Read: Here are the reasons that caused shoot up of retail Inflation at 6.3% in May from 4.3% in April
Onions
In the case of the food article, wholesale inflation has declined marginally to 4.31 percent in May, meanwhile, the prices of onion increased. The price of onion has declined by 19.72% in April, however, increased by 23.24 percent in May.
According to Nomura's research note, “The upside inflation surprise comes at a time when broader price pressures are also likely to build. The June reading is already tracking higher and our tracker for vegetable prices is already up by 703 percent m-o-m versus 1.6 percent in May. Higher global prices continue to push up vegetable oil and beverage prices. On the non-food side, petrol prices are already trending 3 percent m-o-m higher than in May, even as the government has refrained from revising up LPG prices.”