For stability, a bandwidth of a 2-6% rate is good. This, however, varies with time for many reasons. Indias inflation rate is influenced by fuel prices. Inflation is understood as a consistent spurt in prices and the poor cannot afford a price rise, so its critical to keep inflation levels within the desired ban dwidth. Going byGST collectionsand GDP figures, India is relatively safe. Also, we are not an export-driven economy and inflation rates were brought down between February and March.
As per data, Telanganas vegetable inflation in rural areas between April and October is very high, hovering around 20%. In the same p eriod, the corresponding figure (rural vegetable inflation) for the country was just 6%. Agriculturists say price benefits not being passed on to consumers or cultivation not meeting demand.
Countrys Average consumer price index is calculated after taking an average of inflation rates in states. Different weightages are assigned to five major inflation baskets, including food and beverages, betel, tobacco and other Intoxicants, housing, clothing and footwear, fuel and Light. There are sub-baskets within these five like Cereals. Now, each basket is assigned a weightage, which is determin ed by the weightage assigned to each basket in these states. If a particular basket is given a high weightage in a particular state, inflation rate will be high.