New Delhi: In the midst of the Corona crisis, the people of the country are facing the double whammy of inflation. Retail inflation has reached a six-month high in the month of May (Consumer Price Index). The Consumer Price Index (CPI) rose to 6.30 per cent in May. It has reached beyond the purview of the Reserve Bank of India.
The Reserve Bank of India has set a retail inflation target of 4 per cent. A margin of +/- 2 per cent has been given in this. The RBI wants to keep it between a maximum of 6 percent and a minimum of 2 percent in any case. In such a situation, it has gone out of the cap of RBI. In the month of April, the retail inflation rate was 4.23 percent. Food inflation rose to 5.01 per cent in the month of May from just 1.96 per cent in April.
This figure of Retail Inflation is important because on the basis of this the Reserve Bank handles its monetary policy. There was an important meeting of RBI MPC last week. In this, the Reserve Bank had decided not to make any change in the repo rate for the seventh time in a row. At present the repo rate is 4 percent and the reverse repo rate is 3.35 percent. At that time, Governor Shaktikanta Das said that RBI is ready to take all necessary steps for economic recovery.
