Inflation affected life of most Indians in 2020

Wholesale Inflation

Over 70 per cent people have felt the impact of high commodity prices in the past one year, according to an IANS-CVoter pre-budget survey.

The survey showed that 38.2 per cent of respondents said that their quality of life has been “too much” adversely affected due to inflation in the past one year, and 34.9 per cent said that the there was “little bit” of impact.

However, 26.7 per cent people did not feel any impact of high inflation at all. For most of 2020, inflation remained at elevated levels, on the back of high food and fuel prices.

It is because of inflationary concerns that the Reserve Bank of India (RBI) too has kept the lending rates intact after sharp cuts during the initial phase of the pandemic.

However, both retail and wholesale inflation eased December. Retail inflation declined to 4.59 per cent in December 2020 compared with 6.93 per cent in November last, according to government data.

The data released by the Ministry of Statistics and Programme Implementation showed that the easing of the Consumer Price Index (CPI) came on the back of a decline in food prices.

The Consumer Food Price Index (CFPI) for last month came in at 3.41 per cent, down from 9.50 per cent in November 2020.

Wholesale inflation for December also declined to 1.22 per cent due to lower food inflation.

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