In spite of numerous efforts by the Reserve Bank, inflation in the country continues to rise. The wholesale inflation rate reached 6.21 percent in October, up from 5.5 percent last month. This month’s inflation rate marks a 14-month high, causing a substantial increase in food prices, especially for vegetables and processed food items, which is likely to impact the general public.
According to data from the National Statistics Department, the inflation rate for manufactured food items has reached 9.69 percent, up from 8.36 percent in September. The inflation rate for vegetables has climbed to 42.18 percent, compared to 35.99 percent last month. Additionally, the inflation rate for fruits has increased to 8.43 percent, up from 7.65 percent in September. A slight rise in the inflation rate for pulses has also been recorded, now at 6.94 percent compared to 6.84 percent in September. The inflation rate for meat and fish has gone up from 2.66 percent to 3.17 percent, and edible oil prices have also risen. Furthermore, housing inflation rose slightly to 2.81 percent in October, up from 2.78 percent in September.
“The sharp rise in vegetable and edible oil prices is a matter of concern. Some parts of the country have been affected by unseasonal rains, which has contributed to the increase in vegetable prices. Additionally, the rise in edible oil prices is due to an increase in import duties,” commented economist Rajni Sinha. She noted that the government needs to take measures to stabilize these prices. Importantly, with inflation hitting a record high over the past one-and-a-half years, repo rates are expected to remain unchanged at the December Monetary Policy Committee (MPC) meeting. The repo rate has held steady at 6.5 percent in recent meetings, making any potential changes in December a focal point of public attention.
