India's Retail Inflation Eases To 4-Month Low At 5.09% In February

New Delhi: India's retail inflation eased to a four-month low, standing at 5.09 percent in February, according to data released by the Ministry of Statistics & Programme Implementation on Tuesday. This decline brings a sense of relief to household budgets, signaling potential easing of financial burdens for consumers.

In January, retail inflation stood slightly higher at 5.1 percent. However, in February, there was a notable decrease in cooking oil prices, dropping by as much as 11.67 percent. Moreover, the rate of price increase for spices also slowed down to 13.28 percent, compared to 16.36 percent in January. (Also Read: SEBI Warning On Rally In Small, Midcap Stocks Leads To Selloff In Broader Markets)

However, the data show that vegetable prices shot up by as much as 31.38 per cent in January. There was no relief as far as pulses are concerned as they turned costlier by 20.47 per cent, while the prices of cereals went up by 7.83 per cent. (Also Read: Deadline To Update Aadhaar Card For Free Extended Till 14 June 2024)

The consumer price inflation is now above the 4 per cent midpoint of the RBI’s 2-6 per cent target range and is the main reason why the central bank is not going in for a cut in interest rates to spur economic growth.

The RBI is keen to keep inflation under control to ensure stability and has held the repo rate steady at 6.5 per cent for six consecutive times in a row in its bi-monthly monetary policy reviews. The latest inflation data comes weeks before the RBI's Monetary Policy Committee (MPC) meets again on April 3-5. (With Inputs From IANS)