In the last five days, the government has announced the figures of both types of inflation i.e. retail and wholesale inflation. The government is beating the beat that see, we have shown the promise we made to the country that we will reduce inflation. In government data, retail inflation is at the lowest level of 18 months and wholesale inflation has come down to 3 three year low level and where is the inflation that the opposition is talking about unitedly?
The question is big because the core inflation is below the upper band of RBI’s tolerance level i.e. 6 per cent and in April this figure has come down to below 5 per cent. So today there is a need to examine those figures of the Consumer Affairs Department and there is a need to understand whether the Modi government has really done the biggest surgical strike on inflation so far? Has the country’s Modi government passed on the front of inflation? Let’s try to understand.
Here we have taken the average price of everyday items for two days i.e. 1st April and 30th April. Will try to test on the basis of average prices of both the days, has inflation really come down? This assessment is also an acid test of RBI’s monetary policy. The manner in which it increased the EMI of the people by increasing the interest rates by 2.5 per cent from May 2022 to February 2023 to reduce the country’s inflation, such an aggressive style of RBI was never seen before.
What is the difference between flour, pulses, rice and oil?
- On April 1, the price of rice was Rs 39.09 per kg, which became Rs 39.21 on April 30.
- On April 1, the price of wheat was Rs 29.4 per kg, which came down to Rs 28.79 on April 30, which means the prices have come down.
- Flour was available at Rs 34.77 per kg on April 1, which was seen at Rs 34.23 on April 30, which means the price has come down.
- Chana dal was at Rs 72.83, which came down to Rs 72.12 after a month. It means the price has gone up.
- The price of Arhar increased by about Rs 2, from Rs 115.18 on April 1 to Rs 117.28 on April 30.
- There has been a slight decline in urad dal, the average price in the country was Rs 107.62 on April 1, which was Rs 107.5 on April 30.
- Moong dal has increased by about one and a half rupees. On April 1, the average price increased from Rs 105.79 to Rs 107.19.
- Masoor dal has declined by about one rupee. On April 1, the average price was Rs 93.08, which came down to Rs 92.11.
- Sugar has become marginally costlier in the month of April. On April 1, the price was Rs 41.57, which increased to Rs 41.66.
- Groundnut oil became cheaper and the average price on April 1 came down to Rs 188.46 from Rs 188.9.
- Mustard oil has become cheaper by about Rs. On April 1, the average price was Rs 155.17, which came down to Rs 150.
- The prices of vegetables have come down and the average price which was Rs 133.97 on April 1 has come down to Rs 129.06.
- The average price of soybean oil was Rs 140.52 on April 1, which has come down to Rs 134.33.
- The average price of sunflower oil has come down to Rs 144.08 from Rs 151.01 on April 1.
- The price of salt has also seen an increase, on April 1, the average price of salt was Rs 21.64, which has increased to Rs 22.12.
- The price of potato is more or less the same which was Rs 18.4 on April 1, came down to Rs 18.88 on April 30. The difference is not much.
- Onion has become cheaper, the average price on April 1 was Rs 22.33, which has come down to Rs 20.41.
- There was also a decline in the price of tomatoes, on April 1, the average price was Rs 22.94, which came down to Rs 20.55.
Has inflation passed the reality test?
If some items are left out, then in a month the prices of some have decreased and some have increased. The goods whose prices have increased are very minor and their number is also less. Edible oil has become much cheaper. The contribution of edible oil in reducing inflation is being seen more and the prices of onion and tomato have also come down. At the same time, there has been a rise in the price of salt, which is a matter of concern. If you look at Mota Moti, the government seems to be passing the reality of inflation or should we say that it is passing the acid test.