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  3. Retail inflation cools further to 3.17% in January

Retail inflation cools further to 3.17% in January

14 Feb 2017 Evaluate

Easing for the second consecutive month, retail inflation or Consumer Price Index (CPI) stood at 3.17 percent in January, 2017, its lowest level in at least five years. The decline in retail inflation has been mainly due to fall in food prices, especially those of vegetables and pulses. As per the data of the Central Statistics Office (CSO), Ministry of Statistics and Programme, the Consumer Price Index (CPI) (Rural, Urban, Combined) on Base 2012=100 stood at 3.36 percent, 2.90 percent and 3.17 percent respectively compared to 3.83 percent, 2.90 percent and 4.41 percent respectively in December 2016 and 6.48 percent 4.81 percent 5.69 percent respectively in January 2016.

The data also showed that Consumer Food Price Index (CFPI) for all India Rural, Urban and Combined for January 2017 declined considerably to 1.07 percent (-) 0.31 percent and 0.33 percent respectively compared to 2.06 percent, 0.15 percent, 1.37 percent respectively in December 2016 and 6.93 percent 6.50 percent and 6.85 percent in January 2016.

As per the data, Vegetable inflation continued to be in the negative territory at (-) 15.62 percent as against (-) 14.59 percent a month ago. For pulses and products also, the inflation rate was in negative zone at (-) 6.62 percent. However, inflation rate of meat and fish increased to 2.98 percent in January, while that for fruits stood at 5.81 per cent. The fuel and light category’s inflation rate stood at 3.42 per cent in January. Clothing and footwear inflation in January stood at 4.17 percent, lower than 4.88 per cent a month ago. Inflation for household goods and services also declined to 4.19 percent in January as against 4.45 percent a month ago.

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