Inflation figures will change, will the burden on pocket be less?

S Venkateshwari
Inflation figures will change, will the burden on pocket be less?

It is estimated that in april 2022, the inflation rate could have been 8% instead of 7.8%, while in november 2024 it will be 5.0% instead of 5.5%. Overall, what will be the impact on inflation will depend on whether the inflation of food items increases more or that of other things. If 'core inflation' decreases, then the inflation rate will also be low.

How will this method work?

The increase or decrease in the prices of things like oil, ghee, vegetables, pulses and sugar has a great impact on the inflation of food items. But now the importance of these things is being reduced, which can reduce the fluctuations in inflation. Especially, reducing the importance of vegetables can curb the rise in inflation.

When inflation is increasing, the prices of vegetables also increase a lot. But now since the importance of vegetables is being reduced, the increase in their prices will not affect the overall inflation as much. However, it is also important to note that when the inflation rate is decreasing, the prices of vegetables also decrease significantly. In this situation, the reduction in the importance of vegetables can reduce the inflation rate even more, which is not good for the economy.

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