Retail inflation in January 2022 rose to a six-month high of 6.01 per cent, this comes just a month after it had zoomed to a five-month high of 5.59 per cent in December 2021. The spike was owing to sharp rise in food prices as food inflation too soared to 5.43 per cent during the period under review as against 4.05 per cent recorded in December 2021.
In July, retail inflation had reached a high of 6.60 per cent. By crossing the 6 per cent mark, retail inflation also breached Reserve Bank of India’s (RBI) upper tolerance level.
Prices of cereals, eggs and milk products rose in January 2022 compared to December 2021, which led to a spike in retail inflation, that is also measured on consumer price index (CPI), according to data released by ministry of statistics on Monday.
In December 2021, retail inflation had surged to 5.59 per cent which was later revised to 5.66 per cent, which too was a five-month high figure. Earlier during September, October and November, CPI-based inflation had subdued below 5 per cent levels after it had breached the 6 per cent mark between May and July of the current fiscal.
Prices of spices, prepared meals, clothing, footwear, household goods, education, health and transport goods rose in January 2022 compared to December 2021, which propelled retail inflation.
RBI, which mainly factors in the CPI-based inflation, has been tasked by the government to keep the inflation at 4 per cent, with margin of 2 per cent on either side.