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Retail inflation eases to 4.06% in January
Feb-15-2021

India’s retail inflation, which is measured by the Consumer Price Index (CPI), eased to 4.06 per cent in the month of January 2021. The retail inflation during the month of December 2020 was at 4.59 per cent. This is the second consecutive month the CPI data has come within the Reserve Bank of India’s (RBI) upper margin of 6 per cent. The government has mandated the central bank to keep retail inflation within the range of 4 per cent with a margin of 2 per cent on either side.

The National Statistical Office (NSO) under Ministry of Statistics and Programme Implementation in its data has showed that the Rural CPI (General) in January stood at 3.23 per cent as against 4.07 per cent in December. The Urban CPI (General) stood at 5.06 per cent in January as against 5.19 per cent in December. The index value for Rural, Urban and Combined CPI (General) stood at 156.8, 155.7 and 156.3, respectively, in January 2021.

Food inflation eased to a 20-month low at 1.89% in January significantly down from 3.41 per cent in December. The easing of the food basket was due to a fall in vegetable prices that dropped 15.84 per cent year-on-year in January. Apart from vegetables, other key segments were positive. The oils and fats segment saw a rise of 19.71 per cent, while that of pulses and products rose 13.39 per cent and non-alcoholic beverages gained 13.15 per cent. Egg prices climbed 12.85 per cent and the meat and fish segment also witnessed a rise of 12.54 per cent.

The Price data are collected from representative and selected 1114 urban markets and 1181 villages covering all States/UTs through personal visits by field staff of Field Operations Division of NSO, MoSPI on a weekly roster. During the month of January 2021, NSO collected prices from 99.4% villages and 98.5% urban markets while the market-wise prices reported therein were 88.3% for rural and 92.3% for urban.

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