Consumer Price Inflation surges 6.07% in February
Inflation based on Consumer Price Index (CPI) surged to 6.07 per cent in February this year. As per the Ministry of Statistics and Programme Implementation data released on Monday this is the second consecutive time that the CPI data has come over the Reserve Bank of India’s (RBI) upper margin of six per cent.
CPI inflation rises to eight-month high. The annual inflation rate in India increased to a 7-month high of 6.01 per cent in January of 2022 from an upwardly revised 5.66 per cent in December 2021.
The government has mandated the central bank to maintain retail inflation at four per cent with a margin of two per cent on either side for a five-year period ending March 2026.
Wholesale inflation rose to 13.11 percent in February as compared to the corresponding month of the previous year. According to the Ministry of Commerce and Industry data released today, inflation based on Wholesale Price Index ( WPI) witnessed a spike mainly due to rise in prices of crude petroleum & natural gas, mineral oils, metals, chemicals and food articles.
WPI inflation logged double digit rise for the 11th consecutive month in February this year. It was 12.96 percent in January this year while it was 4.83 percent in February 2021.
While the Reserve Bank of India considers Consumer Price Index (CPI) based inflation for its key policies, however, high WPI inflation is seen as a precursor to higher consumer prices as producers pass on rising costs to their customers.