Indian economy experienced yet another blow on Monday as government data should that India’s consumer inflation rate has worsened to 7.35 per cent in December from 5.54 per cent in the previous month. The inflation has worsened for the third time in a row in three months and is above the Reserve Bank of India’s medium-term target of 4 per cent.
Increasing food prices and rising oil prices are one of the many reasons that have led to rising inflation. Amid Iran and the US tension, the oil barrel price touched $70 mark, surging the oil price in an economy that is currently pulling away from spending money.
The economy of India is also struggling due to the low demand in the market and investors not willing to invest under such circumstances. Major government sectors like electricity have also seen a low demand in the months that went.
Read more at The Economic Times