Statement I: The prices of essential commodities like vegetables and edible oils have risen sharply in the past three months, burdening household budgets across the country.
Statement II: The Reserve Bank of India has announced an increase in the repo rate to control inflationary pressures in the economy.

Correct option is D

The common cause here is rising inflation in the economy.
Inflation leads to higher prices of commodities (effect 1).
Inflation also prompts the RBI to raise repo rates (effect 2).
Hence, both statements are effects of the same underlying factor.