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Retail inflation eases to 6.58% in February as food prices cool down
Mar-13-2020

With cooling prices of vegetables and other kitchen items, India’s retail inflation based on Consumer Price Index (CPI) slowed to 6.58% in February 2020 as compared to 7.59% in January 2020 and 2.57% in February 2019. The CPI-based inflation has been on the rise since August 2019, and it is for the first time it has moved southward since then. However, the retail inflation still continues to rule above the comfort level of the Reserve Bank of India (RBI). The inflation in the food basket was 10.81% in February 2020, lower from 13.63% in the previous month.

As per the data of the National Statistical Office (NSO), Ministry of Statistics and Programme Implementation, the CPI (Rural, Urban, Combined) on Base 2012=100 for February 2020, stood at 6.67%, 6.57% and 6.58%, respectively, compared to 1.81%, 3.43% and 2.57%, respectively in February 2019. The index value of CPI for combined stood at 149.1. The data also showed that consumer food price index (CFPI) for all India Rural and Urban for February 2020stood at 10.37% and 11.51%, respectively, compared to -1.75% and 1.27%, respectively in February 2019. The index value of CFPI for combined stood at 149.7 for the month of February.

As per the data, inflation in vegetable prices cooled off significantly to 31.61% from a high of 50.19% in January. This apart, the pulses and products segment saw a rise of 16.61%, while that of spices prices gained 8.80 per cent. Inflation was 10.2% in the meat and fish segment in February, compared to 10.5% in the previous month. However, the inflation in the fuel and light segment almost doubled to 6.36 per cent in February over the preceding month.

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