A vegetable vendor waits for a customer at a market in New Delhi. , Photo Credit: Sushil Kumar Verma
India’s retail inflation eases back to 6.52% in January after a two-month streak below the 6% mark, consumer food prices harden again from 4.2% in December 2022 to 5.94%, broad-based pick-up in price Trends in goods and services with the help of
Vegetable prices, which recorded a 15.1% decline in December 2022, remained in the deflationary zone with a decline of 11.7% in January 2023, but most other food items saw an increase in prices.
Cereals inflation rose to 16.1% from 13.8% in December, milk products rose to 8.8% from 8.5% in the previous month, and spices rose to 21.1% from 20.3% in January.
Rural inflation, which has outpaced urban inflation in recent months, rose from 6.05% in December to 6.85% in January, while urban consumers faced a retail price hike of 6% in January as against 5.4% in December. % Was.
The previous high was 6.77% in October.
There was no base effect at play as retail inflation was recorded at 6.01% in January 2022, beginning a ten-month streak over the 6% upper tolerance limit set for the Reserve Bank of India.
Inflation in eggs accelerated to 8.8% in January from 6.9% in December, while the pace of price rise in meat and fish accelerated to 6.04% from 5.1% in December. Fruits, sugar and confectionery products, pulses, non-alcoholic beverages and prepared meals and snacks all registered higher month-on-month inflation rates.
Inflation in clothing and footwear eased slightly to 9.1% from 9.6%, but inflation in footwear remained steady at 10.5%. Fuel and light inflation eased marginally to 10.85% in December from 11%, as did transport and communication (4.9% to 4.5%).
Personal care and effects saw a sharp rise in inflation to 9.6% in January from 8.1% a month ago, and healthcare inflation rose to 6.4% in January from 6.1% in December 2022.
Among major states, Telangana recorded the highest inflation in January at 8.6%, followed by Andhra Pradesh (8.25%), Madhya Pradesh (8.13%), Uttar Pradesh (7.45%) and Haryana (7.05%).
Madan Sabnavis, Chief Economist, Bank of Baroda said, “Inflation remained moderate across most categories as companies are still passing on the higher cost to consumers.” (bps) Increase in interest rate if inflation remains above 6% during February and March. “There is scope for some government to consider action on the taxes front, especially on fuel – both at the Center and the states – to bring down inflation,” he added.
One basis point is equal to 0.01 percentage point.