Inflation in the country is already above the set estimate and the general public is suffering from it, but this burden does not seem to be reducing recently. The report of research firm Nomura said that inflation in India is at its highest level and it is going to increase further in the coming times.
Government will have to take strict steps
According to the report, the names of four countries are at the top of the economies facing the highest inflation. India is also included in this. In addition, inflation remains high in Singapore, South Korea and Taiwan. The report said that the countries included in this list need to take strict steps to control inflation. In these economies, the baseline inflation is above the prescribed range.
Experts expressed this estimate
Headline retail inflation has been increasing continuously in India for the last few months and to control it, Reserve Bank of India RBI recently hurriedly held the MPC meeting and increased the policy rates by 40 basis points. After this hike, the repo rate at 4 per cent increased to 4.40 per cent with effect from May 20, 2020. Experts in the report predict that inflation in the country may increase further in the coming days.
CPI may reach 7.5%
Baseline inflation accounts for 88 per cent of India’s headline inflation, the report said, which is one of the highest levels in Asia. Apart from this, referring to the results of a poll, it has been said that in the month of April, the country’s retail inflation may reach an 18-month high. The main reason for this is the rise in the prices of fuel and food items. According to this poll conducted between May 5 and 9, the retail inflation (CPI) in the country can reach 7.5 percent in April, which was 6.95 percent in March. Let us tell you that the data of retail inflation can be released on May 12.