Sticky%20inflation%20is%20the%20fallout%20of%20green%20shoots%20which%20are%20increasingly%20becoming%20visible%20in%20the%20Indian%20economy.%20The%20growth%20in%20macro%20indicators%20such%20as%20electricity%20and%20fuel%20consumption%2C%20factory%20activity%2C%20sales%20of%20fast-moving%20consumer%20goods%20and%20discretionary%20products%2C%20brings%20hope%20of%20economic%20revival.%20But%20the%20continued%20price%20rise%20at%20the%20retail%20level%20is%20spoiling%20the%20party.%20Already%2C%20household%20budgets%20are%20being%20roiled%20since%20staples%20such%20as%20daals%2C%20milk%20and%20potatoes%20have%20turned%20expensive%20and%20prices%20are%20unlikely%20to%20cool%20down%20in%20a%20hurry.
Data%20from%20the%20department%20of%20consumer%20affairs%20show%20that%20on%20November%2013%20last%20year%2C%20a%20kg%20of%20tur%20daal%20was%20selling%20at%20Rs%2098%20per%20kilo%20in%20Delhi%20but%20prices%20shot%20up%20to%20Rs%20114%20this%20year%2C%20an%20increase%20of%20nearly%2016%25.%20The%20same%20daal%20is%20now%20available%20for%20Rs%20121%20in%20Mumbai%20against%20Rs%2086%20last%20year%2C%20an%20increase%20of%2040%25.%20The%20humble%20chana%20daal%20was%20selling%20for%20Rs%2058%20a%20kilo%20in%20Agra%20last%20year%20but%20now%20sells%20at%20Rs%2070%2C%20a%2020%25%20increase.%20Prices%20of%20other%20daals%20too%20have%20risen%20across%20the%20country%20over%20the%20last%20few%20months%2C%20partly%20on%20supply%20glitches%20and%20partly%20on%20approaching%20festivities.
In%20vegetables%2C%20while%20prices%20are%20up%20across%20the%20board%2C%20potato%2C%20in%20particular%2C%20has%20become%20frightfully%20expensive.%20In%20Chennai%2C%20the%20tuber%20was%20retailing%20at%20Rs%2028%20a%20kilo%20on%20November%2013%20last%20year%20but%20this%20year%2C%20the%20retail%20price%20was%20Rs%2048%2C%20up%20by%20over%2070%25.%20In%20Mumbai%2C%20potatoes%20have%20gone%20up%20from%20Rs%2029%20to%20Rs%2050%20a%20kilo%2C%20a%2072%25%20increase.%20Oils%20are%20also%20flaring%20up.%20Packaged%20vegetable%20oil%20was%20selling%20for%20Rs%2091%20a%20kilo%20in%20Delhi%20on%20November%2013%20last%20year%20but%20now%20costs%20Rs%20114.%20Sunflower%20oil%20rose%20from%20Rs%2087%20to%20Rs%20103%20a%20kilo%20in%20Ahmedabad%20in%20the%20same%20one-year%20period.
Meanwhile%2C%20government%20data%20have%20shown%20a%20consistent%20increase%20in%20retail%20inflation%20over%20the%20last%20few%20months.%20The%20retail%20inflation%20print%20rose%20to%20a%20six-year%20high%20in%20October%20at%207.61%25%2C%20the%20highest%20since%20May%202014%20and%20after%20the%20%3Ca%20target%3D%22_blank%22%20rel%3D%22noopener%20noreferrer%22%20href%3D%22https%3A//opoyi.com/retail-inflation-grew-to-more-than-7-in-september-data%22%3E%3Cstrong%3E7.27%25%20figure%20in%20September%3C/strong%3E%3C/a%3E%3Cstrong%3E%20%3C/strong%3Ethis%20year.%20Heated%20food%20prices%20have%20been%20the%20major%20contributors%20to%20the%20high%20retail%20inflation%20number.%20In%20October%2C%20prices%20of%20vegetables%20and%20eggs%20were%20up%20by%20more%20than%20a%20fifth%20while%20meat%20and%20fish%20were%20more%20expensive%20by%20a%20sixth.%20Headline%20inflation%20rose%20last%20month%20despite%20a%20rising%20base.
%3Cstrong%3EAlso%20read%3A%20%3C/strong%3E%3Ca%20target%3D%22_blank%22%20rel%3D%22noopener%20noreferrer%22%20href%3D%22https%3A//opoyi.com/wholesale-price-index-inflation-rises-to-148-highest-in-eight-months%22%3E%3Cstrong%3EWPI%20inflation%20rises%20to%201.48%25%2C%20highest%20in%20eight%20months%3C/strong%3E%3C/a%3E
Brokerage%20ICICI%20Securities%20has%20pointed%20out%20that%20the%20rise%20in%20overall%20inflation%20this%20year%20has%20been%20broad-based%2C%20spread%20across%20segments%20as%20diverse%20as%20cereals%2C%20perishable%20foods%2C%20pulses%20and%20proteins.%20%u201CWhile%20difficult%20logistics%20have%20likely%20played%20a%20key%20role%20in%20triggering%20opportunistic%20profiteering%20due%20to%20curbs%20on%20movements%20earlier%20in%20the%20year%2C%20inflation%20pressures%20have%20remained%20persistent%20even%20after%20containment%20measures%20have%20been%20eased.%u201D
This%20brokerage%20further%20said%20that%20wholesale%20and%20retail%20prices%20have%20started%20to%20decline%20%u201Csharply%u201D%20in%20November%20as%20new%20crops%20have%20started%20reaching%20the%20market%20and%20this%20encouraging%20trend%20needed%20to%20be%20monitored%20further.
Another%20set%20of%20analysts%20said%20that%20while%20the%20price%20spike%20in%20edible%20oils%20was%20due%20to%20the%20rise%20in%20global%20food%20prices%2C%20the%20trend%20in%20meat%20and%20fish%20prices%20was%20%u201Csurprising%u201D%20as%20both%20global%20and%20Indian%20wholesale%20prices%20remain%20benign.%20%u201COthers%20-%20cereals%20and%20milk%20-%20have%20started%20to%20dis-inflate%20and%20more%20could%20be%20in%20store%20given%20the%20rising%20base.%20Interestingly%2C%20WPI%20agri-inflation%20has%20come%20off%20rapidly%20in%20the%20past%20six%20months%20%28currently%20hovering%20in%202-3%25%20range%29%20contrary%20to%20the%20trend%20in%20CPI%20food%2C%u201D%20they%20said.
CARE%20Ratings%20pointed%20out%20that%20the%20increase%20in%20October%20inflation%20number%20was%20seen%20in%20both%20rural%20as%20well%20as%20urban%20areas.%20Urban%20inflation%20was%20at%207.4%25%20while%20inflation%20in%20the%20rural%20areas%20was%20higher%20at%207.7%25.%20So%20will%20inflation%20calm%20down%20anytime%20soon%3F%20CARE%20analysts%20have%20said%20that%20inflation%20will%20remain%20elevated%20for%20the%20next%20few%20months%2C%20driven%20primarily%20by%20food%20and%20miscellaneous%20segments.%20And%20since%20inflation%20is%20unlikely%20to%20soften%2C%20there%20is%20little%20possibility%20of%20the%20Reserve%20Bank%20of%20India%20%28RBI%29%20lowering%20lending%20rates%20anymore%20this%20year.
%3Cstrong%3EAlso%20read%3A%20%3C/strong%3E%3Ca%20target%3D%22_blank%22%20rel%3D%22noopener%20noreferrer%22%20href%3D%22https%3A//opoyi.com/nirmala-sitharaman-announces-3rd-atmanirbhar-stimulus-package-amid-covid-19-highlights%22%3E%3Cstrong%3ENirmala%20Sitharaman%20announces%203rd%20Atmanirbhar%20stimulus%20package%3A%20Highlights%3C/strong%3E%3C/a%3E
The%20Central%20bank%20has%20already%20indicated%20the%20marked%20improvement%20in%20the%20economy%3A%20after%20a%20GDP%20contraction%20of%2023.9%25%20in%20the%20April-June%20quarter%2C%20the%20pace%20of%20contraction%20has%20eased%20to%208.6%25%20in%20Q2.%20Alongside%2C%20it%20has%20also%20cautioned%20against%20persistent%20inflation%2C%20stating%20that%20there%20could%20be%20an%20unrelenting%20pressure%20of%20inflation%2C%20despite%20supply%20management%20measures%20already%20put%20in%20place%20by%20the%20government%20such%20as%20the%20imposition%20of%20stock%20limits%20on%20onion%20traders%2C%20imports%20of%20potatoes%20and%20onions%20%28without%20fumigation%29%20and%20a%20temporary%20reduction%20in%20import%20duties%20on%20pulses.%20ends
%3Cstrong%3EAlso%20read%3A%20%3C/strong%3E%3Ca%20target%3D%22_blank%22%20rel%3D%22noopener%20noreferrer%22%20href%3D%22https%3A//opoyi.com/india-in-historic-recession-shows-rbi-nowcast-report%22%3E%3Cstrong%3EIndia%20in%20historic%20recession%2C%20shows%20RBI%20%27nowcast%27%3A%20Report%3C/strong%3E%3C/a%3E
%3Ca%20class%3D%22mention%22%20data-mention%3D%22%23Inflation%22%20data-user-id%3D%22cJVqnLe20t8S%22%20href%3D%22/topic/inflation%22%3E%23Inflation%3C/a%3E%20%3Ca%20class%3D%22mention%22%20data-mention%3D%22%23Economy%22%20data-user-id%3D%225VhOB45vqxj9%22%20href%3D%22/topic/economy%22%3E%23Economy%3C/a%3E%20%3Ca%20class%3D%22mention%22%20data-mention%3D%22%23India%22%20data-user-id%3D%22Bq4MmUPrXF8p%22%20href%3D%22/topic/india%22%3E%23India%3C/a%3E%20%3Ca%20class%3D%22mention%22%20data-mention%3D%22%23Business%22%20data-user-id%3D%221hd39Bl2AdAV%22%20href%3D%22/topic/business%22%3E%23Business%3C/a%3E%26nbsp%3B
