Retail Inflation for January dips further to 2.05% as compared 2.11 % in December
New Delhi, Feb 12: India's Consumer Price Index (CPI), a measure of retail inflation, for the month of January 2019 dipped further to 2.05 % as compared to 2.11 % in December 2018.
The decline in retail inflation is being largely attributed to fall in fuel and food prices.
The Reserve Bank of India, which reduced the key lending rate by 0.25 % last week, mainly factors in CPI-based inflation while arriving at its bi-monthly monetary policy.
The central bank has revised downwards the retail inflation forecast to 2.8 % for the last quarter of the current fiscal on account of favourable factors including benign monsoon. Retail inflation based on the Consumer Price Index (CPI) for December 2018 was also revised downward to 2.11 % from the earlier estimate of 2.19 per cent.
The data released by the Central Statistics Office further said the inflation in the 'fuel and light' category also fell to 2.2 % in January this year from 4.54 per cent in December 2018.
The inflation based on the Consumer Price Index (CPI) was 2.33 per cent in November 2018 and 5.21 per cent in December 2017.
Retail inflation was 3.31 per cent in October 2018 on the back of cheaper kitchen staples, fruits and protein-rich items. The inflation based on the Consumer Price Index (CPI) was 3.7 per cent in September 2018 and 3.58 per cent in October 2017.
Interestingly, retail inflation came in at 5.21% in December 2017 and in November 2017 it was 4.88%.