Retail inflation at 8-month high, double-digit WPI for 11th month – Times of India

NEW DELHI: Retail inflation inched up marginally to an eight-month excessive in February on the again of rising meals & beverage, clothes & footwear costs, whereas wholesale price inflation remained in double digits for the eleventh consecutive month, posing a coverage problem for authorities battling hardening value pressures towards the backdrop of Russia’s invasion of Ukraine.
Information launched by the Nationwide Statistical Workplace (NSO) on Monday confirmed inflation, as measured by the Shopper Worth Index (CPI), rose an annual 6.1% in February from 6% in January. Retail inflation was at 5% in February 2021. Inflation in rural areas was larger at 6.4% whereas in city centres it was at 5.8%. Meals and drinks inflation rose to a 15-month excessive regardless of some moderation in eggs, greens, pulses and sugar.
Edible oil costs remained sturdy amid provide disruptions and rose by 16.4% and are more likely to pose a problem within the months forward. Hovering crude oil costs are additionally anticipated to place stress on costs. RBI governor Shaktikanta Das had final month stated that there was no want for shock or alarm over the 6% retail inflation quantity.
Separate information confirmed inflation, as measured by the Wholesale Worth Index (WPI), rose an annual 13.1% in February from 13% in January on the again of upper costs of manufactured merchandise, crude and pure fuel and first non-food articles.
Inflationary pressures all over the world have soared as a result of impression of the war in Ukraine as worth chains have been disrupted. From crude oil to metals to fertilisers, costs have surged and are anticipated to rule larger relying on the extent of the battle. “The following step could be from the RBI. Ideally a revision within the forecast of inflation in addition to stance could be anticipated within the April coverage,” stated Madan Sabnavis, chief economist, Financial institution of Baroda.
An HDFC Financial institution observe stated, “We don’t anticipate the RBI to alter coverage price at its April assembly. It’s more likely to look by way of inflation prints and sway in the direction of supporting progress.”

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