Inflation at 5-month low...Doesn't really feel like it

The headline read retail inflation at 5-month low but to an average household that seems like a mockery to the exploding monthly budgets. From food to fuel the price rise is escalating, EJ Biz looks at the real inflation faced by consumers.

1. Petrol & Diesel prices

High taxes and rising crude prices continue to pump up the payout for fuel. With diesel prices above 100 and petrol retailing at Rs 110/litre, fuel prices are at a record high across the country. Petrol prices have risen over Rs 20 in just one year. Over half of your petrol bill is taxes, the actual cost of fuel at the pump is actually under Rs 50/litre.

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2. PNG, CNG prices

If you thought going clean and green was a better option, you might be thinking again given that CNG prices have been hiked twice in the first two weeks of October. The pressure on prices increased as the Centre increased the rate of domestic natural gas by 62 percent.

3. LPG Gas Cylinder

Even if you decided to save on fuel bill and stay home, the cost of cooking at home also is burning a hole in the consumers pocket. LPG gas cylinder price now just shy of Rs 1000 mark. With four hikes in just 2 months, cylinders are now Rs 200 more expensive just in 2021.

4. Edible Oil

Be at the fuel pump or in the kitchen kadai, oil has taken over the household budget as prices continue to soar. Edible oil prices are up over 30% in just one year. For example, the average retail price of groundnut oil, which a year back was Rs 150/liter, has now gone up to over Rs 200/liter.

5. Tomato, Onion prices

Not peeling but buying onions at the current price is adding tears to the consumers eyes. With prices sky rocketing due to high fuel costs and also due to untimely rains damaging crops. Vendors are reporting that tomato and onion prices have soared to Rs 50/kilo and are likely to go up even further if fuel costs do not reduce.

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So even as the central bank reduces their inflation outlook for the year consumers across the country are seeing their expense list rise. So when the headline in the morning reads inflation eases, the common man questions where?