urban to rural areas, leading to price pressures,” Sen said.
Officials in the ministry of statistics and programme implementation that calculates the CPI said that they could not assign specific reason for high rural inflation for oils and pulses. They, however, said that the supply chain in rural areas is often weaker than urban areas and is prone to a greater number of bottlenecks.
TCA Anant, secretary, ministry of statistics and programme implementation agreed, “Rural markets are often at the end of the supply chain, so retail inflation at rural levels can persist for longer and higher levels compared to their urban counterparts.”
Private analysts and forecasters have warned that the pick-up in inflation last month could crimp prospects of a rate cut by the Reserve Bank of India in its mid-quarterly monetary policy review scheduled for December 18.
“Demand-supply mismatches have been putting some amount of pressure on retail inflation. A similar trend in milk was also seen earlier this year,” said Sunil Sinha, director – public finance at India Ratings.