Milk & Mobile Tariff Hike: The increase in milk prices and mobile tariff after the Lok Sabha elections in June 2024 has also troubled the Reserve Bank of India, which is the regulator of the banking sector and is responsible for controlling inflation through monetary policy. This is why, while giving information about the decisions taken in the meeting after the 50th Monetary Policy Committee meeting of the Reserve Bank of India, RBI Governor Shaktikanta Das said, there is a need to keep an eye on the impact of the increase in milk prices and mobile tariff.
The increase in milk prices has increased RBI’s troubles
As soon as the last phase of the Lok Sabha elections was completed on June 1, 2024, the results were not even declared yet that Amul to Mother Dairy increased the price of milk by Rs 2 per liter. This made it seem that these dairy companies were waiting for the end of the election to increase the price. As soon as the price of milk became expensive, the hopes of those voters who had voted thinking that they would get relief from inflation on the formation of the new government were dashed. Because inflation had become a big issue in the elections. Due to the increase in the price of milk, the burden of inflation increased further on the common people. The increase in the price of milk means that all the food items made from milk, from cheese, curd, khoya, sweets, became expensive.
RBI monitoring the impact of mobile tariff hike
The limit was crossed when in the last week of June, within two days, all the three big private telecom companies Reliance Jio, Bharti Airtel and Vodafone Idea increased the mobile tariff by 25%. Both prepaid and postpaid tariffs became expensive and so did the data. In such a situation, consumers are now having to spend more to recharge their mobiles. The increase in milk prices and mobile tariffs has also troubled the RBI and this is the reason why the RBI governor is talking about keeping an eye on it.
The rise in food inflation has raised concerns
It is clear from this statement of the RBI Governor that the increase in milk prices and mobile tariffs in the month of June has increased the concerns of those who were already troubled by the rapid rise in food inflation. Food inflation has increased the concern of RBI. The Reserve Bank of India did not take any decision to reduce interest rates in the Monetary Policy Committee meeting and has kept the repo rate unchanged because in June 2024, the Consumer Price Index has reached 5.08 percent, more than the RBI target of 4 percent. In which food inflation has contributed a lot. Food inflation has a 46 percent weightage in the retail inflation rate and it has contributed 75 percent to the inflation rate in May and June. Vegetables have contributed 35 percent to the inflation rate in June. According to the RBI, its pressure has also fallen on other food items.
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