New Delhi, Feb 14 (FN Bureau) India’s retail inflation measured by Consumer Price Index (CPI) rose to 6.01 per cent year-on-year in January, 2022. As per data released by National Statistical Office (NSO) on Monday, retail inflation (revised) was 5.66 per cent in December, 2021. “The sequential hardening in the CPI inflation in January 2022 was driven by food and beverages, and clothing and footwear, whereas pan, tobacco and intoxicants, fuel and light, miscellaneous items and housing displayed some welcome cooling,” said ICRA Chief Economist Aditi Nayar. The inflation has breached the upper tolerance band of Reserve Bank of India (RBI) which is tasked to keep it in the range of 2-6 per cent. In a media briefing earlier in the day today, RBI Governor Shaktikanta Das had said that inflation print for the month of January could come around 6 per cent but noted that it should not surprise or create any alarm.
“If you look at the momentum of inflation, right from October onwards the momentum is on the downward slope. It’s primarily the statistical reasons, the base effect, which has resulted in higher inflation especially in Q3 and the same base effect will play in different ways in the coming months,” the RBI Governor said. In its bi-monthly monetary policy last week, the RBI had maintained status quo and maintained accommodative stance to boost growth. “The tone of the February 2022 policy review virtually rules out a stance change in April 2022, notwithstanding the elevated CPI inflation print for January 2022, and the low likelihood of a meaningful reversal in February 2022,” ICRA’s Nayar said.