Driven by rising prices certain food items, retail inflation soared to a seven-month high of 6.01 per cent in January, breaching the upper tolerance level of the Reserve Bank.
According to the Consumer Price Index (CPI) data released by the government on Monday, the retail inflation in ‘oils and fats’ category stood at 18.7 per cent Several other segments, including fuel and light, clothing and footwear and transport and communication witnessed over 9 per cent price rise on an annual basis.
The CPI inflation in December 2021 has been revised upwards to 5.66 per cent from 5.59 per cent. In the year-ago month of January 2021, the retail inflation stood at 4.06 per cent. The previous high was 6.26 per cent in June 2021.
As per the data released by the National Statistical Office (NSO), the inflation in the food basket was 5.43 per cent in January 2022 as against 4.05 per cent in the preceding month.
The rate of price rise in ‘cereals and products’ quickened to 3.39 per cent during the month as against 2.62 per cent in December.
Likewise, the retail inflation in ‘meat and fish’ category accelerated to 5.47 per cent from 4.58 per cent. In vegetables, the inflation moved up to 5.19 per cent against a deceleration of (-)2.99 per cent in December.
However, price rise of ‘oil and fats’ softened during the month with an inflation print at 18.70 per cent. Fuel and light segment too witnessed a softening of inflation at 9.32 per cent against 10.95 per cent.
The Reserve Bank, which mainly factors in the CPI-based inflation, has been tasked by the government to keep the inflation at 4 per cent, with margin of 2 per cent on either side.
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