Retail Inflation Data: Slight decline in retail inflation in February, retail inflation at 6.44%

There has been a slight decline in retail inflation in February 2023. But it still remains above the tolerance band of RBI. India’s retail inflation eased marginally to 6.44% in February after a three-month high of 6.52% in January. Official data released by the government on Monday showed consumer prices remained above the Reserve Bank of India’s so-called tolerable limit of 6% for two months.

The food and beverages inflation index, elevated due to inclement weather and global headwinds, stood at 6.26% during the month as against 6.19% in January, indicating continued price pressures on basic articles, especially cereals. Global inflation has hit its highest level in decades with Russia’s invasion of Ukraine, the effects of China’s lockdown and supply disruptions driving down prices of everything from energy to food, including in India.

In December, India’s consumer inflation fell to a one-year low of 5.72% before climbing back up. The prices of cereals rose by 16.73% in February as against an increase of 16.12% in January. The increase in egg prices declined to 4.32% as against 8.78% in the previous month. Inflation in milk and milk products came in at 9.65% as compared to 8.79% in January. Inflation in clothing and footwear stood at 8.79%, compared to 9.08% a month ago. Fuel and light inflation stood at 9.9% in January as against 10.84% ​​in January.