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Journalism of Courage
India’s retail inflation for the month of February 2024 stayed flat at 5.09 per cent against 5.1 per cent recorded for the month of January, according to government’s official data. However, the number signifies a significant cooling on a year on year (YoY) basis as India’s consumer price index (CPI) for February 2023 was recorded at 6.44 per cent.
According to the data released by the National Statistical Office (NSO), retail inflation in the food basket was at 8.66 per cent in February, marginally up from 8.3 per cent as compared to January.
The numbers lie within the target range of the Reserve Bank of India (RBI), whose upper tolerance level stands at 6 per cent. India’s central bank has been tasked by the government to ensure retail inflation remains at 4 per cent with a margin of 2 per cent on either side.
Last month, the central bank projected the CPI inflation at 5.4 per cent for FY 2023-24 and recorded at 5 per cent in January-March quarter.
“February CPI inflation print does not add to any further worries. We expect the inflation trajectory to remain around 4.5%-5% in FY2025, with a sharp base effect led dip to around 3% in the second quarter,” Suvodeep Rakshit, senior economist at Kotak Institutional Equities, told Reuters.
