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Retail inflation rises to 3-month high of 6.52% in January

14 Feb 2023 Evaluate

India’s retail inflation or consumer price index (CPI) breached the Reserve Bank of India’s (RBI’s) comfort zone and rose to a three-month high of 6.52 per cent in January 2023, mainly on account of a spike in food prices. The CPI was at 5.72 per cent in December 2022 and 6.01 per cent in January 2022. The Reserve Bank has been mandated by the central government to ensure the retail inflation remains at 4 per cent with a margin of 2 per cent on either side.

The National Statistical Office (NSO) under Ministry of Statistics and Programme Implementation in its data has showed that Rural CPI (General) in January 2023 stood at 6.85 per cent as against 6.05 per cent in December 2022. The Urban CPI (General) stood at 6.00 per cent in January as against 5.39 per cent in December. The index value for Rural, Urban and Combined CPI (General) stood at 177.8, 174.9 and 176.5 respectively, in January 2023.

Inflation in the food basket was at 5.94 per cent in January 2023 as against 4.19 per cent in December 2022. Inflation rate for vegetables contracted 11.70 per cent against a contraction of 15.08 per cent last month. Meanwhile, inflation rate for fuel and light decreased mildly to 10.84 per cent against 10.97 per cent in the preceding month. Inflation rate for cereals came in at 16.12 per cent as against 13.79 per cent in December.

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