E-Paper
Retail inflation at 6.07% in February, still above RBI limit: Official data
Overall retail inflation now stands at an eight-month high, while retail combined food prices in February rose 5.87% from a year ago.
India's retail inflation stood at 6.07% in February as compared to 6.01% the previous month, while wholesale inflation rose to 13.11% against 12.96% in January, official data on Monday showed.
Although retail-level prices – which impact households – rose marginally over the previous month, they have crossed the Reserve Bank’s so-called tolerance limit. The RBI’s tolerance limit for the consumer inflation rate stands between 4-6%.
Rural Indians faced a higher price rise of 6.38% in February against 6.12% in January while urban India saw retail inflation fall slightly to 5.75% from 5.91% the previous month.
Overall retail inflation now stands at an eight-month high, while retail combined food prices in February rose 5.87% from a year ago.
Retail price data is collected from selected 1,114 urban markets and 1,181 villages covering all states to gauge inflation, which influences people’s income and also economic growth.
Wholesale inflation, which impacts traders and businesses, rose sharply, staying in double-digits for the 11th straight month.
Wholesale inflation increased on the back of a sharp increase in the cost of manufactured products.
Analysts said they expected inflationary impact to continue depending on the Ukraine war, which has hit developed and emerging economies alike, de-valuing many currencies, including the rupee, firing up oil prices and disrupting supply chains.
“The inflation trajectory is weighed heavily on the upside with elevated commodity prices, pass through of earlier fuel price hikes and the higher raw material costs. However, we do not expect any shift in policy decisions and stance in the near term as RBI continues to focus on durable growth,” said Upasna Bhardwaj, senior economist at Kotak Mahindra Bank in a note.
In February, urban India saw retail inflation fall slightly to 5.75% from 5.91% in January, while rural Indians faced a higher price rise of 6.38% against 6.12% in January.
