KOCHI: The country's consumer (retail) inflation rose to 6.52% last month, with prices of essential commodities rising after a while. It was 5.72% in December and 6.02% in January 2022. Kerala is not far behind. The inflation rate last month was 6.45%. Kerala, which was one of the states with the lowest price increase in the first months of 2022, is now at the back of the row. The figures of the Central Statistics Ministry came out amid fears that the introduction of fuel cess in Kerala would lead to a further rise in prices from April.
Food inflation, which accounts for 40% of retail inflation in the country, shot up to 5.94% from 4.19% in December. The vegetable price level fell from 15.08% to 11.70% and the fuel price level from 10.97% to 10.84%, but the rise in overall inflation could not be contained. Inflation in Kerala was 5.92% in December. In January 2022, the national rate was 6.01% while in Kerala it was only 4.36%. In February 2022, it was 6.07% nationally and 3.92% in Kerala.
Inflation in Kerala
(in percent)
Interest burden will increase further
The Reserve Bank of India is likely to raise the interest rate burden in the next monetary policy meeting as inflation has crossed limits. The target is to keep retail inflation within 2-6 percent. The RBI has increased the repo rate in all the last six meetings to control inflation. It has been increased from 4 to 6.50 percent. This led to a sharp rise in bank loan EMIs.