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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

PM Modi begins UAE and Europe tour focused on energy, technology and strategic ties

PM Modi has started a diplomatic tour of the UAE and four European countries amid global energy concerns and ongoing geopolitical tensions linked to the Iran conflict.

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PM Modi UAE Visit

Prime Minister Narendra Modi has begun a five-nation diplomatic tour covering the United Arab Emirates, the Netherlands, Sweden, Norway and Italy, with a strong focus on energy security, trade expansion, investment and emerging technologies amid rising geopolitical tensions linked to the Iran conflict.

The visit starts with a stop in the United Arab Emirates, where Modi is scheduled to meet UAE President Sheikh Mohamed bin Zayed Al Nahyan. Discussions are expected to centre on long-term energy cooperation, crude oil and LNG supplies, strategic petroleum reserves and regional developments.

According to official statements, India and the UAE are also likely to sign agreements related to LPG and strategic petroleum reserves during the visit. The outreach comes at a time when higher global oil prices and disruptions linked to the West Asia conflict are impacting energy-importing nations, including India.

India considers the UAE one of its key energy partners, with the Gulf nation being a major supplier of crude oil and natural gas. Reports suggest India is also looking to strengthen its strategic oil reserve capacity through deeper cooperation with Abu Dhabi.

After the UAE visit, Modi will travel to the Netherlands, Sweden, Norway and Italy as part of efforts to deepen cooperation in areas including green transition, semiconductors, artificial intelligence, defence, innovation and resilient supply chains.

During the Sweden leg of the tour, Modi is expected to participate in engagements linked to the European Round Table for Industry alongside European Commission President Ursula von der Leyen and Swedish Prime Minister Ulf Kristersson. Discussions are expected to include AI, green technologies and industrial cooperation.

The Norway visit will include participation in the India-Nordic Summit, where regional cooperation, trade and innovation partnerships are likely to be discussed.

The multi-country visit comes as India navigates volatile global energy markets and broader geopolitical uncertainty stemming from tensions in West Asia. Analysts say the trip is aimed at securing energy supplies while strengthening India’s strategic and economic partnerships with Europe and the Gulf region.

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Education

NEET UG 2026 re-exam to be held on June 21 after paper leak row

NTA has scheduled the NEET UG 2026 re-exam for June 21 after cancelling the earlier test over alleged paper leak concerns.

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NEET Exam

The National Testing Agency (NTA) has announced that the NEET UG 2026 re-examination will be conducted on June 21 following the cancellation of the earlier exam amid allegations of a paper leak.

The original NEET UG 2026 examination, held on May 3, was scrapped after investigative agencies flagged concerns regarding the integrity of the exam process. The matter is currently under investigation by the Central Bureau of Investigation (CBI).

NTA issues fresh schedule

According to the official announcement, candidates who had registered for the cancelled examination will not be required to submit fresh applications for the re-test. Existing registrations will remain valid for the June 21 examination.

The agency has also advised students and parents to rely only on official NTA communication channels for updates related to admit cards, examination centres and other examination-related notifications.

Paper leak investigation underway

The NEET UG paper leak case has triggered a nationwide probe, with the CBI making multiple arrests in connection with the alleged leak network. Investigators are examining how question papers were allegedly circulated before the examination.

Reports have suggested that handwritten copies of the question paper were allegedly scanned and circulated through messaging networks and intermediaries ahead of the examination.

Students await admit cards and city slips

The NTA is expected to release fresh city intimation slips and admit cards ahead of the June 21 examination date. Candidates have been advised to regularly check the official NEET website for updates regarding examination centres and instructions.

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India News

Petrol now costs over Rs 108 in Kolkata, check fuel prices in your city

Petrol prices have crossed Rs 108 per litre in Kolkata after the latest nationwide fuel rate revision. Here is the updated list of petrol and diesel prices in major cities.

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fuel price today

Fuel prices have increased across India following the latest revision in petrol and diesel rates announced on Friday. The fresh hike has pushed petrol prices above Rs 108 per litre in Kolkata, while rates have also risen significantly in Delhi, Mumbai and Chennai.

According to the revised rates issued by oil marketing companies, petrol in Kolkata is now being sold at around Rs 108.74 per litre. In Mumbai, petrol prices have crossed Rs 106 per litre, while Delhi and Chennai also recorded notable increases.

Updated petrol and diesel prices in major cities

  • Delhi — Petrol Rs 97.77/litre, Diesel Rs 90.67/litre
  • Mumbai — Petrol around Rs 106.68/litre, Diesel around Rs 99.12/litre
  • Kolkata — Petrol around Rs 108.74/litre, Diesel around Rs 101.56/litre
  • Chennai — Petrol around Rs 103.67/litre, Diesel around Rs 95.24/litre

The revised fuel prices came into effect immediately and follow a rise in international crude oil prices amid continuing tensions in West Asia. India imports a large portion of its crude oil requirements, making domestic fuel prices sensitive to global market fluctuations.

The increase in fuel prices is expected to affect transportation costs and daily household expenses, especially in metropolitan cities where fuel consumption remains high.

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