Retail inflation eases to 5.72 per cent in December, eased by lower food prices

Retail Inflation Data: The retail inflation rate has declined in the month of December as well. In December 2022, the retail inflation rate has come down to 5.72 percent, which was 5.88 percent in November. Retail inflation may have come down in December 2022, but it is still higher than December 2021 when the retail inflation was 5.66 percent.

The inflation rate of food items has come down. The inflation rate of food items came down to 4.19 per cent in the month of December, which was 4.67 per cent in November 2022. While the food inflation rate was 7.01 percent in October. At the same time, there has been a decrease in food inflation in both urban as well as rural areas in the month of December. Inflation in food items in rural areas has been 5.05 percent in the month of December, which was 5.22 percent in November. While the food inflation rate in urban areas has been 2.80 percent, which was 3.69 percent in November. The inflation rate of greens and vegetables has come down to 15.08 percent. So the inflation rate of fruits has been 2 percent. The inflation rate of milk and dairy products remained at 8.51 percent, the inflation rate of eggs at 6.91 percent and the inflation rate of spices remained at 20.35 percent.

retail inflation within the tolerance band

It is a matter of relief that after November, in the month of December, the retail inflation rate has remained below the tolerance band upper level of 6 percent of RBI. RBI has fixed a tolerance band of 2 to 6 percent inflation rate. But till October 2022, the retail inflation rate remained beyond the tolerance band of RBI. In April, the retail inflation rate reached 7.79 per cent, after which, after five monetary policy meetings, the RBI has increased the repo rate to control inflation. The repo rate has increased from 4 percent to 6.25 percent. Now there will be a meeting of RBI’s monetary policy in February 2023 and it is believed that after two consecutive months of fall in retail inflation, RBI should not make any change in its policy rates.

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