Retail inflation rises to 6.01 per cent in January, breaches RBI's comfort mark

India's benchmark inflation rate, measured by the Consumer Price Index (CPI) rose to 6.01 per cent year-on-year in January 2022, data released by the Ministry of Statistics and Programme Implementation on Monday indicated. The figure for January has clearly crossed RBI confort zone, although marginally.

Retail inflation was 5.66 per cent (revised) in December and 4.91 % in November 2021. Reserve Bank of India Governor

Shaktikanta Das had noted that CPI reading for January 2022, is expected to move closer to the upper tolerance band, largely due to adverse base effects.

In its recently concluded monetary policy meet, Reserve Bank of India said inflation based on consumer price index (CPI) is expected to come well below its upper tolerance level, at 4.5 per cent, in the next fiscal year beginning April 2022.

However, the central bank retained its inflation projection at 5.3 per cent for the current financial year.