'If FM doesn't see red now...': What Chidambaram says on retail inflation

Senior Congress leader P Chidambaram on Tuesday attacked Finance Minister Nirmala Sitharaman over retail inflation rising to 7 per cent, saying if she doesn't see "red" even now, it can be concluded that she does not represent the average family in India.

After declining for three months, retail inflation rose to 7 per cent in August due to higher food prices.

"Only a few days ago, the Honourable FM said that inflation was not a 'red-lettered priority' for her. India's retail inflation surged to 7 per cent yesterday. Food inflation is 7.62 per cent," Chidambaram said in a tweet.

"If the Honourable FM doesn't see 'red' even now, we can only conclude that she does not represent the average family in India," the former finance minister said.

The Consumer Price Index (CPI) based inflation, which is factored in by RBI while deciding the monetary policy, has remained above the central bank's comfort level of 6 per cent for eight months in a row. CPI inflation was 6.71 per cent in July and 5.3 per cent in August 2021.

According to data released by the National Statistical Office (NSO) on Monday, the inflation in food basket was 7.62 per cent in August, up from 6.69 per cent in July and 3.11 per cent in August 2021.