Retail Inflation Rises Again, Index Reaches High In December

Retail inflation rises again, index reaches this high in December. Retail inflation figures for industrial workers are out.

The Labor Ministry said on Monday that retail inflation for industrial workers rose to 5.56 percent in Dec 2021 compared to the same month a year ago, mainly due to higher prices of certain food items.

After the arrival of these figures, now the curtain will also be raised on the figures of Dearness Allowance to increase in January for government employees.

Year to Year Comparison.

The ministry said that the year-on-year inflation was 4.84 percent in the previous month as compared to 5.56 percent in December 2021.

On the other hand, if we look at the figure of 1 year ago, it was 3.67 percent.

Retail inflation rises again: Food inflation stood at 5.93 percent.

Food inflation for December was 5.93 percent. Whereas it was 3.40 percent in the last month (November 2021) and 2.89 percent during the same month (December 2020) a year ago.

AICPI figures.

The AICPI-IW (Consumer Price Index for Industrial Workers) for December 2021 declined 0.3 points to 125.4 points. Whereas in November 2021 it was 125.7 points.

It has decreased by 0.24 percent as compared to November 2021, as compared to a decrease of 0.92 percent during the same month a year ago.

Retail inflation rises again: Reason.

The maximum downward pressure in the current index came from the food and beverage group, which contributed 0.39 percentage points to the total change.

The price of these products increased.

Fresh fish, poultry, chicken, sunflower oil, banana, cauliflower, onion, peas, potato, tomato, ESI contribution, petrol, etc. are responsible for the fall in the index.

However, this shortfall was largely contained by buffalo milk, grapes, pomegranate, okra, firewood, medicine allopathic, auto-rickshaw fare, telephone charges, etc., adding to the pressure on the index.