Last Update: January 12, 2023, 6:06 pm IST
retail inflation in december
Retail inflation eases to one-year low of 5.72 per cent in December 2022, mainly due to softening food prices
retail inflation in december Retail inflation eased to a one-year low of 5.72 per cent in December 2022, mainly due to softening food prices. Besides, it was within the Reserve Bank of India’s (RBI) comfort range of 2 per cent-6 per cent for the second month in a row, showed data released by the Ministry of Statistics and Program Implementation (MoSPI) on Thursday.
The inflation rate based on the Consumer Price Index (CPI) declined to 5.72 per cent in December. It was 5.88 percent in November and 6.77 percent in October 2022.
After remaining above the Reserve Bank of India’s upper tolerance limit of 6 per cent through January 2022, retail inflation eased to 5.88 per cent in November and 5.72 per cent in December – its lowest level in a year.
The marginal decline in inflation was due to moderation in food prices, especially vegetables. It may be noted that food inflation for December came down to 4.1 per cent as compared to 4.67 per cent in November. The biggest contraction in the rate of inflation was observed for vegetables at 15.08 per cent. However, inflation in fuel and power rose marginally to 10.97 per cent from 10.62 per cent in November.
The latest inflation data will provide comfort to the RBI, which has raised interest rates by 225 bps in five tranches since May to contain inflation. Economists had earlier indicated that inflation would remain firm in December as a rise in food prices was offset by higher core inflation.
Despite low inflation, the RBI is likely to maintain its accommodative stance in the near term as it keeps a close watch on inflation.
Meanwhile, according to government data, the Index of Industrial Production (IIP) grew 7.1 per cent year-on-year in November, compared to a 4 per cent decline in October.
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