Onion price hike brings tears to consumers, as inflation rate reaches 6-month high

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New Delhi, Nov 15: Figures say it all even if the Narendra Modi government remains in denial over steep price hike in essential food articles in the recent times.

According to government’s own data released on Monday, vegetable prices across the country are heading northwards especially, onions. Government data showed that inflation in food articles more than doubled to 4.30 per cent in October.

vegetable A scene from a vegetable market

For vegetables, it soared to 36.61 per cent last month as against 15.48 per cent in September. In case of onions, inflation shot up by to 127.04 per cent, while for the eggs, meat and fish segment the rate of price rise was 5.76 per cent.

Inflation at the wholesale level rose to 6-month high of 3.59 per cent in October as the prices of food articles, led by onions and vegetables, rose sharply.

Inflation based on the Wholesale Price Index (WPI), was 2.60 per cent in September. In October last year, it was 1.27 per cent. Last month’s inflation was the highest since April, when it was 3.85 per cent.

Inflation in manufactured products saw a slight dip to 2.62 per cent, as against 2.72 per cent in September.

In the fuel and power segment, inflation rose to 10.52 per cent, as against 9.01 per cent in September.

Fuel inflation has remained high for the past three months as petrol and diesel prices continued to rule high tracking global crude oil rates. Power tariffs shot through the roof on lower domestic production.

Pulses continued to witness deflation at 31.05 per cent. Likewise, in potato deflation was at 44.29 per cent and wheat at 1.99 per cent.

The final print of August WPI inflation remained unchanged at 3.24 per cent.

According to the Consumer Price Index data released on Monday, retail inflation for October rose to a 7-month high of 3.58 per cent on costlier food items, especially vegetables.

Besides, industrial production for September expanded at 3.8 per cent, on poor showing by the manufacturing sector coupled with decline in consumer durables output.

Last month, the Reserve Bank of India (RBI) kept the benchmark interest rate unchanged on fears of rising inflation while lowering growth forecast to 6.7 per cent for the current fiscal.

The RBI also raised its inflation forecast to the 4.2-4.6 per cent range for the rest of the current fiscal as against 4-4.5 per cent previously.

“It has become really difficult to manage my household. We have almost stopped eating vegetables. These days, I only cook rice and dal and eat it with either papad or pickles. My husband is the only earning member in the family of five people. We simply can’t afford to eat vegetables, these days,” said Radhika Jha, a homemaker in Delhi.

OneIndia News

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