Inflation and Lockdown

The Consumer Price Index growth rate in March 2020 hauled down to 5.91% in March 2020; lowest since November 2020. However, the figures must be inferred with caution since the field work for price collection of Consumer Price Index (CPI) was suspended with effect from 19th March 2020 and about 66 per cent of price quotations were received. On the left side; the combined inflation rates (Rural and Urban) of different groups is indicated. Amid Lockdown, predicting the price movements is difficult due to distressed sales and short supplies. The delivery issues must be tackled at the earliest to prevent upward price movements as wastage and stock piling could inadvertently spike the prices of food items. The inflation rates are used as base for policy rates revision; however, given the extraordinary situation the prime motive is recovery of economy.

Source: CEIC Data and Ministry of Statistics and Programme Implementation.