Retail inflation based on consumer price index (CPI) rose to 6.01 per cent in January, quoted data released by the government on Monday. The inflation rate for the month of December was recorded at 5.66 percent.
The Reserve Bank of India (RBI) primarily factors in retail inflation while appearing at its bi-monthly policy. Reserve Bank’s monetary policy committee (MPC) has been charged by the government to restrain retail inflation based on the consumer price index (CPI) at 4 per cent (+,-2 per cent).
Last week, the RBI’s MPC maintained key lending rates and its standpoint unchanged to guarantee a broad-based recovery and projected retail inflation to ease to 4.5 per cent in the next financial year. Shaktikanta Das also announced that the Reserve Bank of India is operating on the borrowing programme for the next fiscal year, while the country’s landing in global bond indexes is also a work in advancement.
The central bank has shredded the repo rate by a total of 115 basis points (bps) since March 2020 to loosen up the crash from the coronavirus pandemic and harsh containment measures. The rate is now 250 bps below the level at the onset of 2019 when the easing cycle commenced.
Earlier in the day, India’s wholesale price index (WPI) remained in the double digits in January, for the 10th month in a continuation, as companies clasp with rising input costs and more pass on increased prices to consumers. Wholesale prices in January increased up to 12.96 per cent from a year earlier, minor than the earlier month’s 13.56 per cent, government data revealed.
