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Indian economy hit as retail inflation reaches 7.35%, vegetable prices rise by 60%

In another setback to the Indian economy, the retail inflation in India rose by 7.35% in December 2019, which is the highest since July 2014, largely due to the increase in vegetable prices and phone tariffs.

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Indian Economy

In another setback to the Indian economy, the retail inflation in India rose by 7.35% in December 2019, which is the highest since July 2014, largely due to the increase in vegetable prices and phone tariffs.

The upsurge was largely due to the rise in food prices, which account to more than a third of Indian household’s budget, and the overall food inflation was 14.12% in the month of December, according to the Ministry of Statistics and Programme Implementation.

The vegetable prices have risen by 60%, while the price of pulses saw an increase by 15.44%, food & beverages at 12.16%, meat & fish by 9.57% and spies by 5.76%, mostly pertaining to the supply shocks caused largely by extreme weather events.

Prices of potatoes, onions and tomatoes, the three most important vegetables in the CPI basket, increased by 37%, 328% and 35% respectively in December on a year-on-year basis.

Food Price Inflation

Food Price Inflation

Retail inflation based on the Consumer Price Index was 2.11% in December 2018 and 5.54% in November 2019.

The economic growth of India was 4.5% in the third quarter of last year that ended in September 2019 and is expected to be to at 5% for the last quarter going into 2020.

Consumer Price Index. (Source: CMIE)

Consumer Price Index. (Source: CMIE)

Monetary Policy Committee (MPC) has paused the cutting of interest rates due to the rise in retail inflation and they will use the December data when they sit out for the meeting in February.

Trends:

According to CMIE report, over the last four months, food prices and fuel prices have seen a significant rise which in turn has affected the overall CPI.

Food CPI in February 2014 was 7.89%, which has now risen to 14.12%.

While the overall CPI in February 2014 was 7.27 %, which has now scaled to 7.35%.

Future:

State Bank of India (SBI) has projected the rate of retail inflation to breach eight per cent in January 2020, as per a report in Businessline. It also cautioned that if food price inflation does not revert, the economy can slip into stagflation.

India News

Mamata Banerjee’s niece Bristy Mukherjee found dead in Birbhum

Mamata Banerjee’s 28-year-old niece Bristy Mukherjee was found dead at her residence in Birbhum’s Kusumba village. Police have launched an investigation.

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Mamata Banerjee

Bristy Mukherjee, the 28-year-old niece of Trinamool Congress chief and former West Bengal Chief Minister Mamata Banerjee, was found dead at her residence in Birbhum district on Tuesday, police said.

Mukherjee was found on the second floor of her family home in Kusumba village in the Rampurhat area. The police have launched an investigation into the circumstances surrounding her death.

Bristy Mukherjee was Mamata Banerjee’s distant cousin’s daughter

Bristy Mukherjee was the daughter of Nihar Mukherjee, who is Mamata Banerjee’s maternal cousin and a regional Trinamool Congress leader.

According to the report, Mukherjee had earlier worked as a non-teaching staff member at Bolpur Upper Primary School. She was among those who lost their jobs following the court proceedings related to the West Bengal school recruitment case.

The appointments of nearly 26,000 teaching and non-teaching staff in state government-aided schools were struck down by the Calcutta High Court, with the Supreme Court later upholding the order.

Police investigation underway

Police said Mukherjee’s body has been sent for an autopsy. An investigation into her death is underway, with authorities expected to establish the circumstances after the post-mortem and other procedural inquiries.

Sources close to the family told that Mukherjee had been undergoing treatment for depression for the past few years.

At this stage, the circumstances and exact cause of her death have not been officially established by the police. Further details are awaited as the investigation progresses.

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India News

Chirag Paswan receives death threat in anonymous letter, hardcore terrorists mentioned

Union Minister Chirag Paswan has received a death threat through an anonymous letter mentioning “hardcore terrorists”. The matter has been conveyed to the Union Home Ministry, CRPF and Bihar government.

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Chirag Paswan

Union Minister Chirag Paswan has received a death threat through an anonymous letter that warned he would be killed by “hardcore terrorists”.

Mr Paswan, who heads the Lok Janshakti Party and is the Union Minister for Food Processing Industries, has Z-plus security.

The matter has been conveyed to the Union Home Ministry, and Home Minister Amit Shah has also been informed. The threat has additionally been brought to the attention of the Central Reserve Police Force (CRPF) and the Bihar government.

Letter seeks urgent investigation

According to a letter sent to the Home Ministry by Chirag Paswan’s secretary, an unsigned communication containing two mobile phone numbers was received by the ministry.

The letter described the communication as containing a direct threat to the life of the Union Minister for Food Processing Industries.

The message reportedly stated: “You will be killed shortly by hardcore terrorists.”

The letter described the direct nature of the threat and its reference to “hardcore terrorists” as a matter of grave concern, raising concerns about the minister’s safety and security.

It requested that the matter be taken up urgently for investigation and that the minister’s security arrangements be reviewed and scaled up if necessary.

Earlier threats to political leaders

The development comes after other instances of death threats involving prominent political leaders.

In August, a man was arrested in Jharkhand for issuing death threats to Prime Minister Narendra Modi and Union Home Minister Amit Shah.

The man, identified as Alim Ansari, had posted objectionable videos on social media in which he used abusive language against Prime Minister Modi, Uttar Pradesh Chief Minister Yogi Adityanath and Amit Shah, besides issuing death threats.

In 2023, the Delhi Police reported receiving two phone calls from a man threatening to kill Prime Minister Modi, Amit Shah and then Bihar Chief Minister Nitish Kumar.

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PM Modi urges Indians to avoid foreign travel, weddings abroad

Prime Minister Narendra Modi praised India’s 7.8% GDP growth and urged citizens to promote Swadeshi by avoiding non-essential foreign travel and weddings abroad.

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PM Modi

Prime Minister Narendra Modi on Tuesday congratulated Indians after the country recorded 7.8% economic growth in the April-June quarter of the financial year 2026-27, while urging citizens to support the domestic economy by limiting non-essential spending abroad.

In a video message, Modi called for greater emphasis on the principles of Swadeshi, Vocal for Local and Made in India. He appealed to Indians to avoid travelling abroad for leisure and to choose India instead for destination weddings.

The Prime Minister also urged citizens to buy gold only when necessary, linking the appeal to his broader call for self-reliance.

PM Modi praises 7.8% GDP growth

Modi said the 7.8% GDP growth reflected the collective efforts and resolve of Indians. The growth came despite global challenges, including wars, instability and disruptions to supply chains.

The government’s latest figures show that India’s economy expanded 7.8% in the first quarter of FY2026-27. The growth was stronger than expectations, although it was lower than the 8.6% expansion recorded in the previous quarter.

Modi said the strong economic numbers reflected growing confidence in India’s economic trajectory.

PM Modi calls for ‘Swadeshi’ and ‘Vocal for Local’

The Prime Minister said Indians should embrace Swadeshi and promote locally made products as part of efforts to strengthen self-reliance.

He urged citizens to avoid foreign travel for leisure and asked them not to organise destination weddings abroad. Instead, he promoted the idea of “Wed in India”, encouraging people to spend on travel, hospitality and celebrations within the country.

Modi also appealed to people to avoid buying gold unless it was necessary.

The message comes as the government seeks to encourage domestic consumption and reinforce the broader objective of an Atmanirbhar Bharat.

Modi links local choices to Viksit Bharat

Modi expressed confidence that greater emphasis on Swadeshi and self-reliance would help India move towards the goal of a developed nation.

He said that stronger participation by citizens in supporting domestic products and services would contribute to India’s long-term development and help create a stronger future for the country’s youth.

The Prime Minister’s message was delivered while he was in Bishkek, Kyrgyzstan, for the Shanghai Cooperation Organisation (SCO) Summit.

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