Retail inflation spikes to 7-month high of 6.01% in January

India's benchmark inflation rate, measured by the Consumer Price Index (CPI) rose to a seven-month high of 6.01 percent year-on-year in January 2022, data released by the Ministry of Statistics and Programme Implementation on Monday showed.

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 Consumer Price Index-based retail inflation was 5.66 percent in December 2021 and 4.06 percent in January 2021.

The Reserve Bank of India, 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.

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According to CPI data, daily consumable 'oils and fats' continued to pinch consumers' pockets with an inflation print at 18.7 percent. However, it softened from December's retail inflation of 24.32 percent. Several other segments, including fuel and light, clothing and footwear and transport and communication witnessed over 9 percent price rise on an annual basis.

The government also revised upwards the CPI inflation for December 2021 to 5.66 percent from 5.59 percent. In the year-ago month of January 2021, retail inflation stood at 4.06 percent. The inflation in the food basket was 5.43 percent in January 2022 as against 4.05 percent in the preceding month, as per the data released by the National Statistical Office (NSO), under the Ministry of Statistics and Programme Implementation (MOSPI).

The rate of price rise in 'cereals and products' quickened to 3.39 percent during the month as against 2.62 percent in December. Likewise, the retail inflation in the 'meat and fish' category accelerated to 5.47 percent from 4.58 percent.

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In vegetables, the inflation moved up to 5.19 percent against a deceleration of (-) 2.99 percent in December. The 'fuel and light' segment witnessed a softening of inflation at 9.32 percent against 10.95 percent.

Earlier in the day, data released by the Commerce and Industry Ministry showed that the wholesale price index (WPI) based inflation eased for the second consecutive month during January at 12.96 percent, even though the food prices hardened.

Notably, WPI inflation has remained in double digits for the 10th consecutive month beginning April 2021. Inflation in December 2021 was 13.56 percent, while in January 2021, it was 2.51 percent.