New Delhi: The trend of inflation in the country seems to be increasing. There is an increase in both the retail inflation rate and the wholesale inflation rate. In May, the retail inflation crossed 6.3 percent and the wholesale inflation based on the Wholesale Price Index reached 12.94 percent. Swiss brokerage house UBS Securities has said that the pace of inflation will remain in the country and its annual average rate will be 5 percent.
The report said that items containing edible oils and proteins pushed up the retail inflation rate to 6.3 per cent in May. This is the top level of the last six months. This is out of the purview of RBI. Therefore, there is no hope of a cut in interest rates in the coming days. The report of UBS Securities said that petrol prices have crossed the Rs 100 level. Due to this, the wholesale inflation crossed the record 12.94 percent. Crude oil has crossed $70 per barrel. At the same time, due to the increase in commodity prices, the prices of manufactured goods have also increased.
Retail inflation based on the Consumer Price Index was 4.3 per cent in April, while it rose to 6.3 per cent in May. This is the top level of six months. During this, food inflation increased by 1.96 to 5.01 percent. Earlier in November 2020, retail inflation had reached a high of 6.93 percent. Wholesale inflation had fallen to -3.37 percent in May 2020, but it increased to 10.49 percent in April 2021. UBS says that retail inflation will be more than the RBI’s medium-term target of 4 percent. In the financial year 2021-22, it will be an average of 5 percent.
