Page 187 - economic_survey_2021-2022

Prices and Inflation 161

5.2 However, in comparison to many Emerging Markets and Developing Economies (EMDEs)
and advanced economies, consumer price inflation in India remained range bound in the recent
months, touching 4.9 per cent in November 2021 and 5.6 per cent in December 2021, owing
to the proactive steps taken by the Government for effective supply management. As against
this, inflation in USA touched 7.0 per cent in December 2021, the highest since 1982, driven
largely by second hand vehicles and energy. While in the UK it hit a nearly 30 years high
of 5.4 per cent in December 2021 mainly on account of rising food prices. Among emerging
markets, Brazil witnessed high and rising inflation during 2021 which touched 10.1 per cent in
December 2021(Figure 2). Inflation in Turkey has been in double digits, reaching 36.1 per cent
in December 2021. Argentina has witnessed inflation rates above 50 per cent during the last six
months.
Figure 2: Consumer Price Inflation in select countries

12 US Brazil India UK

10 8 10.1
Inflation rate (yoy) (per cent) 6 4 7.0

5.6
5.4

2

0
Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21

Source: Organisation for Economic Co-operation and Development; Office for National Statistics, UK
DOMESTIC INFLATION

5.3 Retail inflation, as measured by Consumer Price Index-Combined (CPI-C) inflation,
in India, which was slightly above 6 per cent in 2020-21 owing to supply chain disruptions
caused by COVID-19 restrictions, lockdowns, and night curfews, moderated during the
current financial year. Retail inflation during 2021-22 (April-December) stood at 5.2 per cent
(Table 1). Wholesale inflation, based on Wholesale Price Index (WPI), after remaining benign
during the previous financial years, saw a sharp uptick during 2021-22 (April-December). A part
of the observed rise in wholesale inflation could be attributed to the low base in the previous
year. However, rising input costs and global commodity prices also contributed to the rise in
wholesale prices.