Due to the record increase in diesel prices, the cost of freight from trucks can increase by more than 15 percent. This will directly affect the prices of milk, vegetables, medicines and cereals.
This may result to increase in food inflation. The increase in diesel prices will also affect the cost of production of agricultural crops, due to which the prices of agricultural products can also increase.
The opposition is calling it a step-breaking step for the common man in this era of economic recession. Experts have appealed to the government to give relief to the people by withdrawing the increased diesel prices.
Food inflation was 2.55 per cent in April, which fell to 1.13 per cent in May due to a continuous decrease in demand. But diesel prices have increased by Rs 10.63 between the last 19 days and petrol prices have gone up by Rs 8.66 per liter.