Retail inflation eases for second straight month, falls down to 4.4% in February

Retail inflation eased for the second straight month in February to 4.44%, lowest in four months, as food and fuel prices came down, government data showed today. 

Retail inflation, based on Consumer price index (CPI), was at 5.2% in December 2017 and 5.07% in January. In February 2017, however, it was 3.65%.

According to data released by the Central Statistics Office today, while the rural inflation was 4.37%, the urban inflation stood at 4.52%. 

The data showed that the rate of price rise in the consumer food segment was lower at 3.26% in February, as against 4.7% in the previous month.

Inflation in vegetables was 17.57% last month, down from 26.97% in January, and for fruits, it was 4.80% (as against 6.24%).

Milk and its products too were less expensive with inflation print of 4.21%, cereals and products at 2.10%, meat & fish at 3.31% while for eggs the prices grew at a slower pace of 8.51%.

Inflation for the fuel and light category was at 6.80% in February (against 7.73% in January). However, the rate of price increase was higher for transport and communication services at 2.39% (1.97% January).

In January, retail inflation had declined to 5.07% while the inflation based on wholesale prices had eased to a six-month low of 2.84%.

The inflation on the basis of Consumer price index (CPI) and Wholesale Price Index (WPI) was at 5.21% and 3.58%, respectively, in December 2017.

Meanwhile, the industrial output grew by 7.5% in January. The Index of Industrial Production (IIP) was 7.1% in December 2017.

(With PTI inputs)