Retail inflation in the country, as measured by the Consumer Price Index (CPI), increased to 6.01 percent in January, according to figures provided by the Ministry of Statistics and Program Implementation (MoSPI) on Monday. Furthermore, the retail inflation rate for December 2021 was lowered from 5.59 percent to 5.66 percent.
The Reserve Bank of India’s (RBI) upper margin of 6% was slightly violated in January CPI statistics. For a five-year term ending March 2026, the government has directed the central bank to keep retail inflation at 4% with a 2% buffer on either side. The RBI considers retail inflation data heavily when determining its bi-monthly monetary policy. The central bank’s Monetary Policy Committee (MPC) left the repo rate at 4% for the eleventh time in a row last week while maintaining an “accommodative attitude.”
Retail Inflation rose from 4.05% to 5.43% in a month
The Consumer Food Price Index (CFPI), rose to 5.43 percent in January from 4.05 percent in December 2021, according to the data.
The increase in the food basket was owing to a strong increase in oil and fat costs, which increased 18.70 percent year over year in January. Aside from that, meat and fish prices increased by 5.47 percent, while vegetables increased by 5.19 percent, and pulses and products increased by 3.02 percent.
Apart from food and beverages, the fuel and light category increased by 9.32%, apparel and footwear increased by 8.84%, and housing increased by 3.52 percent. The wholesale inflation rate, or WPI, jumped 12.96 percent last month, according to other economic data released by the commerce ministry earlier in the day.