RBI governor voiced concern about rising inflation...

The RBI had suddenly called a meeting without any fixed schedule regarding the economic situation of the country, after which some big decisions were also taken. Inflation is skyrocketing in the country and in such a situation, a press conference by bank OF INDIA' target='_blank' title='reserve bank of india-Latest Updates, Photos, Videos are a click away, CLICK NOW'>reserve bank of india (RBI) governor Shaktikanta Das on wednesday has shocked the people from upper to middle and lower classes together. He has expressed the possibility of increasing inflation in the country.

1. Bad effects of the Russia-Ukraine War

In fact, Shaktikanta Das has said that due to the global situation regarding the Russia-Ukraine war, the prices of food items have increased unexpectedly in the world markets, whose effect is also visible in the domestic market. He said that inflationary pressure is likely to remain in the coming times. That is, there is a possibility of a further increase in inflation.

2. There was a sudden meeting

Significantly, after the meeting of the Monetary Policy Committee (MPC) held on May 2-3 without any fixed schedule, the RBI on wednesday announced to increase the key policy rate repo with immediate effect. However, there has been no change in the inflation forecast given by the central bank in its monetary policy review in april this year. 

3. There will be pressure on food items

Shaktikanta Das has said that the shortage of wheat at the global level is also affecting domestic prices. Restrictions on exports from some major producing countries and reduction in sunflower oil production due to war may keep edible oil prices firm. With the increase in the cost of animal feed, the prices of poultry, milk, and dairy products can increase.

4. It will have a bad effect on the poor

RBI governor Shaktikanta Das said that persistently high inflation adversely affects savings, investment and competitiveness, and production growth. High inflation affects the poorest people the most as it affects their purchasing power.

5. petrol-diesel has spoiled the budget

Along with this, the RBI governor has said that the rising prices of petroleum products in the domestic market from the second fortnight of march are increasing the core inflation and it is expected to intensify further in April.