India’s annual retail inflation rate eased to 6.44 percent in February from 6.52 percent in January, government data said today.
The retail inflation rate in rural areas was 6.7% compared to 6.1% in urban areas. Food inflation decreased to 5.9 percent in February from 6 percent in January.
The inflation rate of the food basket was 5.95 percent in February, down from 6 percent in January.
The Reserve Bank has been mandated by the government to maintain retail inflation at 4 percent, with a margin of 2 percent on either side.
CPI (Consumer Price Index) inflation was above the Reserve Bank of India’s target of 6 percent for the second time in four months.
The previous highest figure was 6.77 percent in October.
Except for November and December 2022, retail inflation has been above the upper limit of RBI tolerance of 6 percent since January 2022.
The RBI has raised the repo rate by 250 basis points since May last year to control rising prices. The latest 25 basis point hike in February lifted the policy rate to 6.50 percent.
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