Since January 2012, the earliest period for which there is monthly inflation data under the current series, rural and urban inflation broadly moved in tandem. For August 2019, rural food inflation is 0.9% while the urban equivalent is 6.42%. The sub-category of food and beverages has been considered for food inflation here. But a rapid growth in urban inflation will become a concern, especially since crucial assembly elections are around the corner, he added. Any policy which tries to stimulate incomes in rural areas or control inflation in urban areas will hurt the other region, and will be a big dilemma for policy makers, he explained.

Source: Hindustan Times September 12, 2019 20:11 UTC