Retail inflation rises to 3-month high of 6.52 per cent in January, says Govt data

Inflation: The retail inflation rose to a 3-month high of 6.52 per cent in January, the government data showed on Monday.

Leaving November and December 2022 months apart, the retail inflation has remained above the RBI’s upper tolerance limit of 6 per cent ever since January 2022.

The food inflation also saw a surge from 4.19 per cent in December 2022 to 5.94 per cent in January 2023.

Commenting on the data, Aditi Nayar, Chief Economist, ICRA, said the CPI inflation recorded a sharper-than expected spike to a three-month high in January 2023, led by an unexpectedly acute jump in food inflation.

“Following the surge in the January 2023 CPI inflation print, we have revised our forecast for the Q4 FY2023 average CPI inflation to 6.2 per cent from 6 per cent, which exceeds the projection released last week by the MPC, suggesting that another rate hike may be in the offing in April 2023,” she noted.

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