<p dir="ltr">A sharp rise in food, cooking gas and fuel prices pushed India’s retail inflation to 7.79 per cent in April, the highest since 2014, dealing a mighty blow to Indian households which are yet to recover from the pandemic.</p>.<p dir="ltr">The higher-than-expected April inflation numbers could force India’s central bank, which raised the key lending rate by 40 basis points in an unscheduled meeting earlier this month, to go in for a steeper interest rate hike in its policy review in June. </p>.<p dir="ltr">“Overall rising price pressures remain a cause of concern, and are likely to pressure the (Reserve Bank of India’s) monetary policy committee further,” according to Madhavi Arora, lead economist at Emkay Global Financial Services.</p>.<p dir="ltr"><strong>Also Read | <a href="https://www.deccanherald.com/business/economy-business/inflation-getting-broad-based-rbi-set-to-hike-repo-by-another-1-in-fy23-report-1108703.html" target="_blank">Inflation getting broad-based, RBI set to hike repo by another 1 per cent in FY23: Report</a></strong></p>.<p dir="ltr">The persistent inflation has also raised concerns about demand in Asia’s No. 3 economy.</p>.<p dir="ltr">"Higher prices of goods will eventually eat into the household budget, dampening the demand for even the non-essential items in the months ahead," Aditi Nayar, ICRA's chief economist, told DH.</p>.<p dir="ltr">Many low and middle-income families are already dipping into their savings or taking high-interest loans from money lenders to pay their food bills. Some people have started taking buses to commute to work instead of using their own vehicles or opting for cabs. In some extreme cases, people are skipping meals or eating less altogether to make ends meet. Most people who spoke to DH earlier this month have completely stopped spending on non-essential items. </p>.<p dir="ltr">The government promised action to reduce inflation’s impact on the common man. </p>.<p dir="ltr">"While inflation is expected to be elevated in 2022-23, mitigating action taken by the government and RBI may reduce its duration," the finance ministry said in its monthly report released minutes ahead of inflation numbers.</p>.<p dir="ltr">This is the fourth month in a row that inflation has remained above the Reserve Bank of India's upper target range of 6 per cent. The RBI has been mandated by Parliament to keep inflation below 6 per cent. If it fails to do that for nine consecutive months, it will have to write to the government explaining why it could not control the price rise and also present a plan to bring prices back in line. </p>.<p dir="ltr">While the rate of price rise in food accelerated to 8.38 per cent in April from 7.68 per cent in the previous month, for fuel and light, it went up to 10.80 per cent from 7.52 per cent in the preceding month, official data showed. Food inflation accounts for nearly half the consumer price basket. </p>.<p dir="ltr">Diesel prices have risen nearly 10 per cent in the past one month and petrol rates have risen by close to 9 per cent. To make things worse, a Rs 100 increase per unit on cooking gas cylinders has pushed LPG prices to over Rs 1,100 per unit in remote areas.</p>.<p dir="ltr">A separate set of data released by the government showed production of consumer non-durable segments contracted in March, indicating that demand for goods such as rice, wheat, pulses, soaps and clothing too has been affected.</p>
<p dir="ltr">A sharp rise in food, cooking gas and fuel prices pushed India’s retail inflation to 7.79 per cent in April, the highest since 2014, dealing a mighty blow to Indian households which are yet to recover from the pandemic.</p>.<p dir="ltr">The higher-than-expected April inflation numbers could force India’s central bank, which raised the key lending rate by 40 basis points in an unscheduled meeting earlier this month, to go in for a steeper interest rate hike in its policy review in June. </p>.<p dir="ltr">“Overall rising price pressures remain a cause of concern, and are likely to pressure the (Reserve Bank of India’s) monetary policy committee further,” according to Madhavi Arora, lead economist at Emkay Global Financial Services.</p>.<p dir="ltr"><strong>Also Read | <a href="https://www.deccanherald.com/business/economy-business/inflation-getting-broad-based-rbi-set-to-hike-repo-by-another-1-in-fy23-report-1108703.html" target="_blank">Inflation getting broad-based, RBI set to hike repo by another 1 per cent in FY23: Report</a></strong></p>.<p dir="ltr">The persistent inflation has also raised concerns about demand in Asia’s No. 3 economy.</p>.<p dir="ltr">"Higher prices of goods will eventually eat into the household budget, dampening the demand for even the non-essential items in the months ahead," Aditi Nayar, ICRA's chief economist, told DH.</p>.<p dir="ltr">Many low and middle-income families are already dipping into their savings or taking high-interest loans from money lenders to pay their food bills. Some people have started taking buses to commute to work instead of using their own vehicles or opting for cabs. In some extreme cases, people are skipping meals or eating less altogether to make ends meet. Most people who spoke to DH earlier this month have completely stopped spending on non-essential items. </p>.<p dir="ltr">The government promised action to reduce inflation’s impact on the common man. </p>.<p dir="ltr">"While inflation is expected to be elevated in 2022-23, mitigating action taken by the government and RBI may reduce its duration," the finance ministry said in its monthly report released minutes ahead of inflation numbers.</p>.<p dir="ltr">This is the fourth month in a row that inflation has remained above the Reserve Bank of India's upper target range of 6 per cent. The RBI has been mandated by Parliament to keep inflation below 6 per cent. If it fails to do that for nine consecutive months, it will have to write to the government explaining why it could not control the price rise and also present a plan to bring prices back in line. </p>.<p dir="ltr">While the rate of price rise in food accelerated to 8.38 per cent in April from 7.68 per cent in the previous month, for fuel and light, it went up to 10.80 per cent from 7.52 per cent in the preceding month, official data showed. Food inflation accounts for nearly half the consumer price basket. </p>.<p dir="ltr">Diesel prices have risen nearly 10 per cent in the past one month and petrol rates have risen by close to 9 per cent. To make things worse, a Rs 100 increase per unit on cooking gas cylinders has pushed LPG prices to over Rs 1,100 per unit in remote areas.</p>.<p dir="ltr">A separate set of data released by the government showed production of consumer non-durable segments contracted in March, indicating that demand for goods such as rice, wheat, pulses, soaps and clothing too has been affected.</p>
