New Delhi: RBI Governor Shaktikanta Das has blamed rising urban inflation on the prices of eggs and milk, saying rural inflation has been under control since people don’t purchase milk in villages.
"Urban food inflation is rising mostly because the prices of egg and milk have increased. In rural sector, not much of milk purchase happens. Milk purchase is mostly in the urban sector. Milk prices have gone up across states," Das told CNBC-TV18.
Core consumer price index (CPI) inflation data released earlier this month stated that the all-India general CPI inflation was nearly steady at 3.21 per cent in August 2019, compared to 3.15 per cent in June 2019.
The corresponding provisional inflation rate for rural sector was 2.18 per cent and for urban area was 4.49 per cent in August 2019 as against 2.19 per cent and 4.22 per cent, respectively, in June 2019.
Within food items, inflation increased for vegetables at 6.90 per cent, milk and products at 1.40 per cent, spices at 2.37 per cent, and pulses and products at 6.94 per cent. However, the inflation eased for meat and fish at 8.51 per cent, prepared meals, snacks, sweets etc. at 2.35 per cent, oils and fats at 0.65 per cent, non-alcoholic beverages at 2.90 per cent, sugar and confectionery at (-) 2.35 per cent and egg at 0.29 per cent in August 2019.
Among the CPI components, inflation of food and beverages moved up to 2.96 per cent in August 2019 from 2.33 per cent in June 2019.