February retail inflation eases to 6.58%

India's retail inflation rate in February stood at 6.58 percent, according to data released on March 12.

Retail inflation for the month of January was 7.59 percent.

February core inflation came in at 4.1 percent against 4.8 percent in January.

Food prices, which is a gauge to measure changes in kitchen budgets, stood at 10.81 percent in February against 13.63 percent a month ago.

Vegetables inflation for February came at 31.61 percent against 50.19 percent in January.

Inflation rate in cereals and products stood at 5.23 percent in February against 5.25 percent in January.

Pulses and products recorded an inflation of 16.61 percent in February, against 16.71 percent a month ago.

Prices of meat and fish came in at 10.2 percent in February against 10.5 percent in January.

In the fuel and light category, inflation was seen at 6.36 percent for February against 3.66 percent in January.

In its February policy review, the RBI left the repo rate unchanged and said that it would maintain the accommodative stance as long as necessary to revive growth, while ensuring that inflation remains within the target.

The RBI has revised CPI inflation projection upwards to 6.5 percent for the last quarter of 2019-20, 5.4-5 percent for first half of 2020-21, and 3.2 percent for third quarter of 2020-21, with risks broadly balanced.

The RBI has found itself in a tricky situation in its inflation targeting mandate in the middle of an economic slowdown.

India's gross domestic product (GDP) grew 4.7 percent in the October-December quarter of 2019-20, according to government data.

GDP growth in the previous quarter was revised to 5.1 percent.

The government estimated that gross value added (GVA), which is GDP minus net taxes, grew at 4.5 percent in 2019-20 against 4.8 percent in Q2.