India’s Retail Inflation Rate Lowest In A Year, Falls To 5.72 Per Cent In December

India's retail inflation rate was within the Reserve Bank of India's (RBI) comfort range of 2%-6% for a second month.

Written by: Shrimansi Kaushik Edited by: Shrimansi Kaushik

Published: January 12, 2023, 6:00 PM IST

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https://www.india.com/business/indias-retail-inflation-rate-lowest-in-a-year-falls-to-5-72-per-cent-in-december-5850530/ Copy

Retail inflation rate fell to 5.72 per cent in December, staying within the RBI's range.

Inflation Rate Lowest In A Year: India’s retail inflation rate eased in December, falling to 5.72 per cent, lowest in a year and staying within the Reserve Bank of India’s (RBI) comfort range of 2%-6% for a second month, data released by the Ministry of Statistics & Programme Implementation (MoSPI) showed on Thursday.

The Consumer Price Index (CPI)-based inflation rate was 5.88% in November and 6.77% in October 2022. The government has mandated the RBI to maintain retail inflation at 4% with a margin of 2% on either side for a five-year period ending March 2026.

Lower food prices, particularly the fall in vegetable prices, helped keep inflation within the tolerance range. Food inflation, which accounts for about 40% of the inflation basket, came in at 4.19% in December as against 4.67% in the preceding month.

On the other hand, the factory output, measured in terms of the Index of Industrial Production (IIP), jumped 7.1% in November as against 4% in October, according to the government data. US consumer prices index (CPI) is also expected to have moderated in December.