Today i.e. on March 13, the inflation rate (CPI) figures for February will be released. The inflation rate is expected to decrease in February due to a slight reduction in the prices of food items. Food items account for about half of the consumer price index (CPI) basket. In the last month, the prices of food grains like wheat have decreased in the international and domestic market. The government has also increased the supply. Its effect will be seen on the retail inflation figures.
Retail inflation in the country had risen to 6.52% in the month of January. This was the highest level of retail inflation in three months. It stood at 5.72% in December 2022 and 5.88% in November 2022. Three months ago in October 2022, retail inflation was 6.77%. Whereas in January last year it was 6.01%.
Experts suggest inflation is unlikely to rise much for the next few quarters. But the pace of its reduction will be slow. The effect of more than 10% fall in rupee last year can also be seen on inflation.
Barring food items and energy, there is currently no visible decline in core inflation. According to economists, it will remain above the limit of 6% in February. Due to this, there is no possibility of laxity in the monetary policy of RBI. Interest rates may increase further.
