Pulses, pharmaceuticals, phone charges to disturb inflation math!

It is to be noted that the overall retail prices rose by over 7 per cent in last December on the back of high food prices, especially onion touching Rs 200/kg in major markets.

Hyderabad: Reserve Bank of India (RBI) Governor Shaktikanta Das seen repeatedly saying 2019 was a year of surprises on account of an unexpected spike in onion prices.

It is to be noted that the overall retail prices rose by over 7 per cent in last December on the back of high food prices, especially onion touching Rs 200/kg in major markets.

Learning lessons from the past, Das tried to caution on impending threats to inflation.

Speaking to reporters on monetary policy for February and March, the Governor said, “In coming weeks and months, onion prices are likely to ebb as supply conditions improve”.

He further said, “The salutary effects on headline inflation are, however, likely to be tempered by hardening of prices of other food items”.

As per Das, pulses, drugs, pharmaceuticals, adjustments to telecom charges expect to put pressure on retail prices.

In December 2019, telecom operators hiked tariffs by up to 42 per cent to mitigate losses emanating from the Supreme Court’s order on Adjusted Gross Revenue (AGR).

As per an estimate, telecom companies need to shell out over Rs 1.47 lakh crore to the government, comprising license fees, spectrum usage charge, interest and penalties.