Two statements are provided below. Decide which of the given options presents the most appropriate relationship between the two:
Statement I: The current trend indicates that food and vegetable inflation continues to be a pain point. Food inflation rose to 7.79% in June from 7.47%, and vegetable inflation rose to 14.74% from 10.85%. In the weeks ahead, the volatile food inflation will determine the course of overall inflation.
Statement II: For RBI too, the trend is a concern since under the current agreement with the government, if the inflation exceeds 2%, it'll have to explain to the government why it could not be contained (the lower limit is 2%).
Select an option to reveal the answer and explanation
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