New Delhi: Data released by the Ministry of Statistics and Programme Implementation revealed that the retail inflation based on the consumer price index (CPI), eased to a 1-year low of 5.72% in December, 2022. It was at 5.88% in November, 2022. The retail inflation slipped to lowest level since December 2021.
Thus the CPI has come below the Reserve Bank of India’s (RBI) upper margin of 6% for the first time in the calendar year 2022. December is the second consecutive month in which retail inflation has come within the RBI’s tolerance band of 4 ( +/- 2) per cent. The softening prices of food items are the main reason for low inflation rate. Food and beverages account for 46% of India’s Consumer Price Index (CPI) basket.
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Food Price Index dipped to 4.19% in December from 4.67% in November. The consumer price index (CPI) based retail inflation was 6.77% in October 2022, and 5.88% in November. The CPI Inflation in rural areas declined to 6.05% in December from 6.09% in November. Retail inflation in rural areas stood at 6.05% as compared to 5.39% in urban areas.
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