India’s retail inflation rises to 6.07% in February 2022

The retail inflation in India, measured by the Consumer Price Index (CPI) rose to 6.07% in February 2022 as compared to 5.03% reported in the year-ago period due to higher prices of certain food items, according to the data released by the National Statistical Office (NSO) on Monday.

Retail Inflation, which has been rising since September 2021, stood at 6.01% in January this year. Retail inflation tracked by the Consumer Price Index (CPI) measures the changes in prices from a retail buyer’s perspective.

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A Reuters poll of economists had predicted that the inflation rate had likely slipped to 5.93% in February on an annual basis.

The retail inflation rate has once again crossed the upper limit of the Reserve Bank of India’ (RBI) Monetary Policy Committee (MPC), the second time since June 2021.

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In February 2022, Urban inflation moderated to 5.75%, down from 5.91% in the previous month. While rural inflation stood at 6.38% as compared to 6.12% in January. Month-on-month combined retail inflation surged 0.24%, rural inflation grew 0.18% and urban inflation grew 0.30%.

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According to the data released by the National Statistical Office (NSO), food inflation was at 5.85% in February 2022 as against 5.43% in the previous month. In the food segment, inflation in cereals grew up to 3.95%, meat and fish to 7.45%, while prices for eggs rose 4.15% during the month.

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Retail Inflation in oils and fats was 16.44% as compared to 18.70% in January this year. The rate of price rise for vegetables was at 6.13%, clothing and footwear was at 8.86% and fuel & power was at 8.73%.

The wholesale price-based inflation in February rose to 13.11% on surging prices of crude oil and non-food items, even though food articles softened, according to the data released by the Ministry of Commerce and Industry on Monday.

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The government has tasked the Reserve Bank of India (RBI) to keep the CPI-based inflation at 4%, with a margin of 2% on either side.