India’s retail inflation above RBI’s target level for second month

New Delhi: Retail inflation in India remained above RBI’s 6 per cent upper tolerance band for the second straight month in February 2023, with the Consumer Price Index pegged at 6.44 per cent, government data released on Monday showed.
The retail inflation in rural and urban India was 6.72 per cent and 6.1 per cent, respectively. Among groups, cereals and products, and fruits, among others, contributed to the elevation in retail inflation in February.
Further, Consumer Food Price Index in February was 5.95 per cent, data showed.
Retail inflation on vegetables, however, declined 11.61 per cent.
Notably, India’s retail inflation, based on Consumer Price Index, during the month of December was at 5.72 per cent, versus 5.88 per cent in November and 6.77 per cent during October.
India’s retail inflation was above RBI’s 6 per cent target for three consecutive quarters and had managed to fall back to the RBI’s comfort zone only in November 2022.