The impact of the rise in the price of petrol and diesel has started to appear on inflation. According to a Reuters survey, retail inflation could mean a rise in retail inflation to 4.83 percent in the month of February. In the month of January, the retail inflation was 4.06 percent. According to the survey, in addition to petroleum, the impact of the rise in food inflation is also visible. Right now the price of petrol and diesel is touching the sky. Petrol is being sold at Rs 100 per liter in many districts of India, while crude oil has crossed the $ 70 level for the first time in a year.
Reserve Bank Governor Shaktikanta Das also said in the past that if the price of petrol and diesel is not controlled, then it will increase the transportation cost and increase retail inflation. Retail inflation reached a 16-month low in January. The retail inflation rate in January was 4.06 percent. In December 2020, the rate was 4.59 percent, while in November the inflation rate was 7.6 percent. The food inflation rate was 1.89 percent in the month of January, while it was 3.41 percent in the month of December. Das had suggested a tax cut to cut the price. Apart from this, it was also talked about bringing it under the purview of GST.
The RBI has kept retail inflation at 4 percent. Although a margin of +/- 2 percent has been given. This means retail inflation between a minimum of 2 percent and a maximum of 6 percent is considered within the purview of the Reserve Bank. None of the economic experts involved in the survey said that retail inflation will go beyond the 6 percent range. He said that the price of crude oil must have reached $ 70 per barrel, but retail inflation will remain in the realm right now.