homevideos Newseconomy NewsJanuary consumer inflation above RBI’s target of 6%; experts discuss

January consumer inflation above RBI’s target of 6%; experts discuss

Retail inflation rose to 6.01 percent in January on an annual basis and breached the RBI's upper tolerance level, mainly due to higher prices of certain food items, as per government data released on Monday. The Consumer Price Index (CPI) based retail inflation was 5.66 percent in December 2021 and 4.06 percent in January 2021.

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By CNBC-TV18 Feb 14, 2022 7:48:39 PM IST (Published)

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Retail inflation rose to 6.01 percent in January on an annual basis and breached the RBI's upper tolerance level, mainly due to higher prices of certain food items, as per government data released on Monday. The Consumer Price Index (CPI) based retail inflation was 5.66 percent in December 2021 and 4.06 percent in January 2021.

CNBC-TV18 poll was expecting 5.98 percent. 6.01 percent is slightly above Reserve Bank’s given mandate of the MPC’s mandate of 4 percent plus or minus 2 percent which means inflation should remain below 6 percent. The Reserve Bank's own estimate for January, February and March, the figure would be 5.7.
As per the data released by the National Statistical Office (NSO), the inflation in the food basket was 5.43 percent in January 2022 as against 4.05 percent in the preceding month. The Reserve Bank, which mainly factors in the CPI-based inflation, has been tasked by the government to keep the inflation at 4 percent, with a margin of 2 percent on either side.
To decode the number, CNBC-TV18’s Latha Venkatesh spoke to Abhishek Upadhyay, Sr Economist at ICICI Securities PD; DK Joshi, Chief Economist at CRISIL; Anubhuti Sahay, Head -  S Asia Economic Research of Standard Chartered Bank; and Prasenjit K Basu, Chief Economist of ICICI Securities.
Watch accompanying video for more.
-With PTI inputs

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