Retail inflation was above the RBI’s upper targeted limit of 6% for the first time in three months.
New Delhi:
The annual retail inflation rate for India rose to 6.52 per cent in January from 5.72 per cent in December, government data showed today.
CPI (Consumer Price Index) inflation was above the Reserve Bank of India’s upper targeted limit of 6 per cent for the first time in three months.
The previous high was 6.77 per cent in October.
A increase in food prices is one of the key reasons behind the rise in retail inflation – food inflation rose to 5.94% in January from 4.19% in December. Food price inflation accounts for nearly 40% of the consumer price index basket.
Last week, The RBI (Reserve Bank of India) hiked the repo rate by 25 basis points, noting that core inflation remained high.
The Reserve Bank has been mandated by the government to ensure the retail inflation remains at 4 per cent with a margin of 2 per cent on either side.
