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Retail inflation rose to 6.21% in October due to rising food prices. This is the highest level of inflation in 14 months. Inflation in August 2023 was 6.83%. While a month before October it reached 5.49% due to vegetable prices in September.
Food items contribute about 50% to the inflation basket. Its inflation rose to 10.87% from 9.24% on a month-on-month basis. While rural inflation increased from 5.87% to 6.68% and urban inflation increased from 5.05% to 5.62%.
Increase in prices of vegetables and oil
| material | September | October |
| grain | 6.84% | 6.94% |
| meat and fish | 2.66% | 3.17% |
| Milk | 3.03% | 2.97% |
| cooking oil | 2.47% | 9.51% |
| the fruit | 7.65% | 8.43% |
| vegetables | 35.99% | 42.18% |
| Beans | 9.81% | 7.43% |
| spices | -6.13% | -7.01% |
| soft drink | 2.57% | 2.73% |
| Betel nut, tobacco | 2.51% | 2.50% |
| Clothing, footwear | 2.71% | 2.70% |
| Fuel and Light | -1.39% | -1.61% |
How does inflation affect?
Inflation is directly related to purchasing power. For example, if the inflation rate is 6%, the earnings of Rs 100 will be only Rs 94. So investment should be done keeping in view of inflation. Otherwise the value of your money will decrease.
How does inflation rise and fall?
The rise and fall of inflation depends on the demand and supply of the product. If people have more money they will buy more things. Buying more goods will increase the demand for the goods and if the supply does not meet the demand then the price of these goods will increase.
Thus the market becomes vulnerable to inflation. Simply put, excessive flow of money or shortage of goods in the market causes inflation. When demand is low and supply is high, inflation will be low.
Image Credit: (Divya-Bhaskar): Images/graphics belong to (Divya-Bhaskar).
