Retail Inflation Spikes To 6.01 Per Cent In January, Highest In 7 Months

According to the data released by the National Statistical Office (NSO), the inflation in the food basket was 5.43 per cent in January 2022 as against 4.05 per cent in the preceding month

The inflation rose to 6.01 per cent in January on an annual basis, the highest in seven months, from 5.59 per cent in December. Image: Getty

New Delhi: Retail inflation in January rose to 6.01 per cent, the upper limit of the Reserve Bank of India’s (RBI’s) tolerance band, driven by higher consumer goods and rising food prices.

As measured by the consumer price index (CPI), the inflation surged to 6.01 per cent in January on an annual basis, the highest in seven months, from 5.66 per cent in December, government data showed on Monday.

According to the data released by the National Statistical Office (NSO), the inflation in the food basket was 5.43 per cent in January 2022 as against 4.05 per cent in the preceding month.

Inflation is climbing across the world and India is no exception but price rises have stayed relatively tame by historical standards, allowing the RBI to leave interest rates unchanged for now.

Still, prices of daily consumables like tea, cooking oil, pulses, among others, have increased by 20 per cent to 40 per cent since the beginning of the Covid-19 pandemic.

The RBI Governor Shaktikanta Das on Monday said RBI’s inflation projections are quite robust. He said the momentum of inflation, from October 2021 onwards, is on a downward slope.

“It’s primarily the statistical reasons the base effect which is leading to higher inflation especially in third quarter, and the same base effect will play in different ways in the coming months,” Das said.

Meanwhile, on Monday, the annual wholesale price-based inflation (WPI) eased marginally to 12.96 per cent in January compared to the December figure of 13.56 per cent, data released by the Ministry of Commerce & Industry showed.

The wholesale price index (WPI) grew 13.56 per cent during December 2021, while the WPI for November last year was revised to 14.87 per cent from 14.23 per cent, the data revealed.

According to the government release, “The high rate of inflation in January, 2022 is primarily due to rise in prices of mineral oils, crude petroleum and natural gas, basic metals, chemicals and chemical products, food articles etc. as compared the corresponding month of the previous year.”