Monday, December 4

Marginal decline in retail inflation, but above RBI’s prescribed range

New Delhi: The country’s retail inflation has come down marginally to 6.44% in February. It was 6.52% in January. Inflation eased by 0.8 percentage points in a month due to softening in the prices of food articles and fuel. However, this is the second consecutive month when retail inflation is above the RBI’s prescribed range. Except for November-December last year, the retail inflation rate has remained above the RBI’s fixed range of 6% since January 2022. The Reserve Bank estimates that the retail inflation rate will remain at the level of 6.5% in the financial year 2022-23. On behalf of the government, the central bank has got a target of keeping the inflation rate at 4% with a variation of 2%. To control inflation, RBI has increased interest rates by 250 basis points since May last year.

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