CRISIL: Urban inflation less than rural

Q.  According to a CRISIL report, urban inflation fell from 9 percent to 5.3 percent in the past 24 months. According to this report, in the same period rural inflation fell from 10.1 percent to what percent?
- Published on 20 Jul 16

a. 6.1
b. 6.2
c. 6.3
d. 6.4

ANSWER: 6.2
 
A report released by CRISIL shows that for the past 5 years, 69 percent of India’s population residing in its rural areas has experienced a higher degree of inflation as against urban counterparts.
  • Report indicates in the past 24 months to June 2016, while urban inflation fell from 9 percent to 5.3 percent (compared with the two years prior)rural inflation fell from 10.1 percent to 6.2 percent.
  • Gap has remained around 100 basis points in the recent past and is in the recent past and is caused by higher core and fuel inflation in rural areas.
  • In fiscal 2016, rural core inflation was 6.7 percent as against 4.8 percent in urban.
  • Sub-categories such as health, education, household goods and services as well as recreation and amusement recorded higher inflation in hinterland in the previous fiscal.
  • NSSO household consumption expenditure data for 2011-2012 offers data in support of this.
  • Schemes to improve access to infrastructure such as Pradhan Mantri Gram Sadak Yojana have yet to near completion.

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